China's Banking Sector Competitiveness Analysis

Finance is the core issue of modern economy, and the function of banking sector is not to be neglected in the modern economy and society. The subprime mortgage crisis, broken out in U.S.A. in 2007, spread rapidly over other countries by the financial institutions and markets and developed over the international financial crisis at last, which affected the real economy and made a great influence on the global economic development and caused great losses to the banking sector, particularly to the banking sector in Europe and America. Many international banks were going bankrupt or takeover. It is confirmed again for the importance of the banking industry healthy development by the international financial crisis.For the international financial crisis, the global economy was in recession and the governments must make package of policies and implement financial reforms to stimulate economic. This made a great change to the banking business environment. The international financial crisis also changed the pattern of the international competition in the banking sector. The profitability of the western international banking was falling, and meanwhile, the profit level of the banking sector has a remarkable increase in new markets, especial for the banking sector in China.China's banking sector has an extremely important position in China's financial system and plays an active role in configuration of financial resources. In the good circumstances of China high-speed economy development, after thirty year's reform and development, China's banking sector has played the competitive advantage and the total profits of China's banking sector also has been promoted rapidly, but when compared with the international large banks , China's banking sector still has many shortcomings, core competitiveness dose not substantially increase accordingly, the scale and quality of assets still have very large gap, there are in constant promotion of space in corporate governance structure, risk management mechanism and capital added. Therefore, China's banking sector should be combined the characteristics of its own development, and learn the successes of western banking development process and actively seize the good opportunity of China's economic and social transformation. On the base of current and future international economic environment and the international financial market conditions change, China's banking sector should enhance advantages and avoid disadvantages, innovate and full use of domestic and foreign resources, increase the overall strength and ability to participate in international banking competition, improve the position and power of china banking in the international competition. That will play exert positive and important role to ensure china's financial security and stability, and promote china's economy healthy, steady and rapid development.This work mainly divided into six parts, the situation as follows :The introduction mainly explains the background and meaning of the work and relevant review and theoretical framework, and state the purpose and analysis method of the research, and maybe some innovative and some inadequate.The first chapter reviews the competitive and the theory of banking competitive. First, it analyses the theory on competitive of the western scholars and Karl Marx. Then, it's about the average enterprise competitiveness theoretical analysis and the indicators of evaluation guidelines. Last, it analyses the banking sector competitiveness theory, and states the evaluation competitiveness of the main indicators and the method of assessment in this way.The second chapter mainly analyses China's banking sector competitiveness. First, analysis of and elaboration on the China's banking development process in a few more important times. Second, it focuses on the status of China's banking competition pattern and states the detailed information of China's banking competition by analysis the major commercial banks and national corporation commercial banks. Finally, it analyses the China's banking competition pattern and trend, evaluates the status of the China's banking competition in overall, and analyses the reasons of china banking competitiveness promotion, and further analyses the Inadequate of the China's banking competitiveness.The 3nd chapter analyses the western main big banks competitive and the China's banking can get some revelation from western banks. First, it gives a general evaluation on the major western banking competitiveness. Second, it analyses the reason and ways of the western banking sector competition promotion. Last, according to the successful cause and experience of Western banking sector competitive promotion, it gets some revelations to develop and improve the ability for China's banking competitiveness.The fourth chapter states the influence of the banking sector competitiveness after the international financial crisis and the policies of governments in response to crisis. First, it analyses the causes and evolutionary of this international financial crisis considering the particular context of the crisis, and analysis the influence of the financial crisis for the international banking competition pattern. Second, the analysis of the influence of the international financial crisis for Western banking sector, and the policies of Western governments in response to the financial crisis, and influence of the banking sector competitiveness patter for these policies. Third, the analysis of the influence of the international financial crisis for China's banking sector, and the policies of China's government in response to the financial crisis, and influence of the banking sector competitiveness for these policies.The fifth chapter analyses the path for China's banking sector to raise the competitiveness after the international financial crisis. First, with the financial crisis and China's economic transformation, it is very necessity on theory and practical for China's banking sector to enhance the competitiveness. Second, analyses the main problem for China's banking sector to enhance the competitiveness after the international financial crisis. Last analyses the main path and related policy advice for China's banking sector to enhance the competitiveness.Banking sector competitive analysis involves a series of factors. This work tries to analyze the path for China's banking sector to enhance the competitiveness from many views including the background and environment of banking sector development, the change of the international financial centre, the brand value of banking sector and the rising for China in world economic growth. All of these will help to deduce the proposals or related policy advice for China's banking sector to enhance the competitiveness. But for the limited of writer's knowledge and capability, many analyses often stop at the surface of things and can't get the nature. On the banking sector competitiveness, there are also many advanced and feasibility theories and policies needed the writer to further study.