Improve The Competitiveness Of China's State-owned Commercial Banks Empirical Research

For two years since China joins the World Trade Organization (the WTO), China faces a completely open financial market, in which China's financial structure is a comparatively weak arena. A financial sector is the core of a business. In the Western countries, the financial structure include all bonds, stocks, futures, insurance and all kind of investment and banking activities, they all interact, and develop. Because of the incompleteness of our financial development, banking becomes the core business of our whole financial structure. Therefore, the strength of the banking sector, especially the state owned commercial banking unit, has a competitive problem, which affect the state policy and the people's intention.This paper is based on a great deal of research on financial market, and believes that the threat to the survival and development of the commercial banking is "replacement competition". The author has studied further on how to improve competitive power of state owned commercial bank based on his accumulated working experience in a state owned commercial bank for over ten years, and based on the study, and research through work, management and the corporate customers. First of all, the paper discuss the competitive power of our state owned commercial bank, and point out that the weakness of our state owned commercial banks is imbedded in the 80's and 90's. When the state had to protect the smooth operation of others state programs and created an amorous debt for the state owned bank. On the other hand, it is important for the state owned bank to run cautiously, and this also is the reason of its late development. The paper uses Shanghai as an example, one of the financial developing cities, as a practical research. The author discovered the state owned commercial bank is out preformed the share owned bank and the oversea invested bank. Therefore, presented the paper central idea: commercial property right in a highly competitive market is not a main issue, to resolve the commercialproperty right is to incentive, but the competition itself is the best incentive. The theme of a competitive market is to learn from the market, the customers and the competitors. Thus the author has stated the employees are the focal point of improving competitive power. Based on the current status of the employees of ZheJiang state owned commercial bank, share owned bank (includes city commercial banks), and studied 185 different enterprises comments on state owned commercial bank. The paper has uncovered the critical element of improving and ratifying the competitive power of state owned commercial bank. To further investigate the critical element is to gather more information from 206 managers of state owned commercial bank. The end, the paper has concluded the opinion and solution for the improvement of the competitive power of state owned commercial bank.