A Study On Core Competition Of Modern Commercial Bank

Modern commercial bank in modern economy life is a financial enterprise provides capital financing and currency credit intermediation, creates methods of circulation and trades a variety of financial derivatives in order to maximize the value of shares by application of advanced scientific technologies. The core competition of modern commercial bank is a concept that includes commercial bank's integrated ability of surviving, competing and developing in certain compound level of social and economy system, economy environment and technical conditions. Core competition of commercial bank is an important factor of overall financial system competition in one country.Because of more and more importance of finance in modern economy, the scale and efficiency of financial system have become the key factor to promote the development of economy. As a result, finance has been taken as the core of modern economy. As a basic and preliminary element, the core competition of banking industry is substantially related to the national power whose core is national economy. China have seen the rapid progress of financial system since the implementation of reform and open up policy, but the core competition of modern commercial bank in China is relatively undeveloped to the top commercial bank all around the world. Nowadays, foreign banks have access to financial industry in China and land their business and network in China. This is a serious environment that commercial banks in China have to face up. Under this condition, to study on core competition of modern commercial bank in China and analyze the current situation of it to introduce the strategy of developing the core competition of commercial bank of China is valuable and indispensible.This dissertation follows the law of natural logic and methodology of deduction. It begins with the factors that affect the core competition of modern commercial bank, such as resources factor and ability factor and analyzes a variety of sub-abilities that integrate the core competition, then takes China Merchants Bank as an example to research and assess its overall core competition in order to deduct the methodology of promoting the core competition of modern commercial bank. The framework of this dissertation is as follow:Chapter 1: Introduction of this dissertation.Chapter 2: summary of commercial bank's core competition theories and documents. Based on a great number of valuable international research results, this dissertation precisely introduces and assesses core competition theory, financial intermediation theory, modern risk management theory and related discussion to clarify the framework of theories and illustrate the development and progress of commercial bank's core competition theory in these years. This chapter establishes a theoretical base for further study on core competition of commercial bank in next chapters.Chapter 3 explains the conception, features and dispositions of core competition of modern commercial bank, based on the definition of core competition of commercial bank.Chapter 4: Study on elements of core competition of modern commercial bank. The basic elements and main research contents of core competition: (1) risk control ability including precaution, analysis, feedback, avoid and disposal of risks. (2) creativity including creation of technology, knowledge, management, portfolio and business. (3) Enterprise strategy. It studies on strategy planning, implementation, modification and related fields to introduce the strategy realization path of core competition of modern commercial bank. (4) Enterprise culture. It explains the structure of enterprise and its power and effect to core competition. (5) Enterprise institution. Institutional creation is a substantially important factor to realize and promote the core competition of modern commercial bank. (6) Talent. Talent system=core management + specified technical personnel + core staff. (7) Promotion ability. It indicates that a bank can design available promotion project (including information management system, market investigation system, business management system, Promotion portfolio system and service system) by overall investigating, analyzing, decision-making and planning.Chapter 5 introduces the methodology and content of assessment of core competition of modern commercial bank by empirical analysis. This chapter assesses the core competition from the perspective of China Merchants Bank by qualitative research and quantitative research and to establish an effective research framework for analyzing the core competition of commercial bank, including environment assessment indicators system design and systematic qualitative/quantitative research. This chapter analyzes the competitive advantage and disadvantage of China Merchants Bank via integrated assessment of risk control ability, creativity, strategy management ability and the degree of satisfaction of clients and staffs.Chapter 6 introduces the thinking of promotion of core competition of modern commercial bank. This chapter is divided into 7 sections as follow: (1) Promotion of risk control ability, (2) Promotion of creativity. (3) Promotion of strategy management ability. (4) Improvement of system and institution. (5) Optimization of human resources. (6) Creation of promotion mechanism. (7) Optimization of organization.The innovation and shortcomings in this dissertationThere are 3 innovations in this dissertation.1. This dissertation gives penetrate study on core competition of modern commercial bank by combining the theories with practice. It relatively fills the blank of domestic research in this field.2. This dissertation includes a plenty of theoretical documents and embedded empirical analysis. These contribute to creation of methodology and contents in study.3. Concrete summary and conclusion of core competition of China Merchants Bank gives many beneficiary ideas about study on core competition of commercial bank to later scholars and understanding of situation, position, advantage and disadvantage of modern commercial bank.Admittedly, shortcomings do exist in this dissertation. For instance, the theoretical range of this study is not wide enough to cover all illustration and analysis on core competition. Moreover, some part of analysis should be perfected in future theoretical and practical research.