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Commercial Banks' Core Competitiveness Study

Posted on:2004-05-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z M ChenFull Text:PDF
Abstract/Summary:PDF Full Text Request
With the increasing globalization of world economy, it is expected that Chinese commercial banks will confront strong competition from external competitors five years after China entered into WTO. How should Chinese commercial banks orient their market positions, develop the living space for themselves in the competitive environment, where to go, and where is the break-even point, are the major concern of this paper.This research tries to begin with the intermediary function of commercial banks introduced by the concept of core competitiveness of competitive strategy. Then, with bank's resource optimizing (in all the levels of national economy) as longitude, and risk management ( of capital return) as latitude, it is derived that: at the current moment, credit risk management should be the core competitiveness of commercial banks.After the orientation of core competitiveness of commercial banks, this research tries to frame up the plan for creating the core competitiveness of commercial banks. According to Basel II, it is shown up that the basic frame of commercial bank risk management should include the basic object and strategy of risk management, and the important principal of realizing full risk management and implementing dynamic risk management.Based on the frame above, this research design the operating process of credit risk management in detail, and the internal control functions that are most important to the process. Following, the technical issue is discussed in more detail. It consist of traditional credit risk management techniques and modern credit risk management techniques based on modern financial theories and mathematical techniques.As it is pointed out, however, it is not enough to create an internal credit risk management system. Rather, a credit risk optimizing system at the whole economy level is necessary. That is, an inter-bank transaction system and market for credit risk must be created, for which, the development of credit derivative products and market for the products is, in turn, in need. This is a process which requires the full involvement of commercial banks. They develop this market and benefit from it.Finally, some cases of successful credit risk management of commercial banks world wide are offered to support the arguments above.
Keywords/Search Tags:Financial risk, Credit risk, Core competitiveness, Financial intermediary
PDF Full Text Request
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