A Study On The International Competitiveness Of China’s Large Commercial Banks

At present, China’s banking sector is in strategic transformation and rapid internationalization period. It is epitaxial extensive growth mode should be transformed into intension growth. China’s banking industry should to reduce the cost of inputs and capital consumption, to optimize asset quality and customer service, business structure and bank governance mechanisms need to be optimized as well, for improving operational efficiency and the international competitiveness. We should comprehensive think about the scale and benefits, risks and benefits, the robustness and innovation, localization and internationalization, etc. Guiding and regulating from bank governance mechanism of China’s banking sector based on long-term quality growth rather than the extensive expansion of the scale.Truly change the growth mode. The layout of the China Banking globalization should to speed up, to carry out a full range of business competition on a global scale, to improve the international competitiveness of China’s banking sector, China’s banking sector should be transformed from large to strong.In international banking, reform, merger, reorganization, is always the main melody, and also is a first-class large-scale commercial banks stepped growth path. After the financial crisis and the European debt crisis, European and the United States inject capital into the banking sector, or nationalization. or restructuring between large syndicated, or sufficient cash flow and well-run banks merger and acquisition the banks who are going into failures, in order to promote the reform and development of the banking sector. For emerging banking market countries, seize the opportunities of the strong economic growth and the deepening of the banking sector reform, in order to reduce operating costs, improve operational efficiency. And accelerate the expansion of overseas the banking sector business and institutional layout, such as China, Brazil, South Africa, Russia, etc. In the face of financial globalization and international banking profound change, China’s large commercial banks should change development ideas that on the protection of the country’s financial policies and the epitaxial extensive mode, acutely aware of the urgency to improve the degree of international operations and improve the international competitiveness.With the expansion of the operational autonomy of the China’s banking sector, the rapid development of interest rate market-oriented reform, the trend of financial disintermediation development, the rapid development of capital and money market, as well as other aspects of the deepening reform of the financial system, in the competitive international banking market, China’s commercial banks must be able to continuously provide modern financial products and services, to the financial markets than foreign banks more efficiently and the continued profitability as well as self-development ability.Taking various measures to improve capital efficiency and capital adequacy ratio of China’s banking sector, improving bank governance structure, adhering to market-driven reform and innovation business principles to establish world-class large and most competitiveness commercial banks is the direction of the commercial banking sector reform and development in China.Research on the international competitiveness of China’s large commercial banks is one full of creative works, is not only fully integrate and complement the existing research results, but also be able to specify the path for further research in the field of international competitiveness of the commercial banking industry; not only to provide a theoretical basis for large commercial banks to develop heterogeneity competitive strategies to enhance their own management level and international competitiveness, but also to provide comprehensive evaluation criteria and theoretical basis for the government sector macro decision-making, policy formulation, supervision and management. Construct the evaluation index system of the international competitiveness of China’s large commercial banks, an empirical test on factor element of the international competitiveness of China’s large commercial banks, and more clear understanding of the key factors that determine the international competitiveness of China’s large commercial banks. In the face of strong external competition for first-class large-scale international commercial banks, large commercial banks in China can effectively make rational response measures, to consolidate and develop its own markets, customers and business, and gradually into the world-class commercial bank queue. Meanwhile, the overseas investment strategy services to large enterprises in China, is conducive to China’s stable economic development and enhance global influence. Scientific and comprehensive evaluation the international competitiveness of China’s large commercial banks has great theoretical and practical significance.Select The Banker(UK) magazine ranked the world’s top50powerful type bank and five other China’s joint-stock banks as the research sample (Excluding GoldmanSachs&Morgan Stanley),drawing a large number scholars of documents, data and research methods on the firm (especially on commercial banks) competitiveness, core competitiveness, and international competitiveness,thus more comprehensive and accurate definition of the international competitiveness of the commercial bank concept and evaluation system. The entire study is divided into eight parts:The first part introduces the background of the thesis topics, topics of significance, the main research content and methods, the article main innovations and deficiencies; The second part describes the theoretical basis of the competitiveness of commercial banks, concept will be explained on the basis of the research, carries out a comprehensive analysis and commentary on the research of scholars; The third part introduces the evaluation of the practice of the international competitiveness of commercial banks, the elements, The fourth part introduces the development status of the history of China’s large commercial banks, the process of internationalization, foreign banks in China; The fifth part introduction the history of the foreign banks, development status, the operating status of the international strength of its international competitiveness; The sixth part, introduces the international competitiveness of large commercial banks: International Comparison and Experience. The international banking industry performance and competition in the banking sector environment empirical research, draw a conclusions that mixed operation and internationalization is useful to enhance the international competitiveness of the commercial banks; Focus on the type of international development model of the large commercial banks and international development Experience; The seventh part of the research programs of the international competitiveness of China’s large commercial banks, including the theoretical framework of the study, the study sample selection, evaluation index selection and standardization as well how to establish the study model. Introduced the international competitiveness of China’s big banks ranking score of the specific indicators, and theoretical analysis to improve the international competitiveness of China’s large commercial banks; The eighth Part, introduces the main conclusions and policy recommendations.Interpretation of the theory and empirical research, the main conclusions of this paper are:First, the large commercial banks in China has entered a new stage of development, has become a important participant of the international banking; Secondly, China’s large commercial banks’international competitiveness depends obvious advantages of its high profitability and scale of growth, including a higher rate of return on total assets, a higher rate of return on capital and low operating cost. Again, another important manifestation in China’s banking sector is through injection of state-owned commercial banks, setting up a new joint-stock commercial banks and city commercial banks, vigorously the introduction of foreign strategic investors, IPO fund-raising and their investment refinancing High profitability under the protection,Endogenous development by leaps and bounds And industry merger integration and other means, the capital strength of the Chinese banking industry is rapidly increasing; In addition, the overall risk management ability of the Chinese banking sector needs to be strengthened, operating robustness needs further improvement; Finally, the China’s Banking brand competitiveness is not strong, difficult to capture the confidence of foreign customers in the international banking market.Further improve the international competitiveness of China’s large commercial banks, large commercial banks in China should to do well in international competition in the following aspects:(1) global awareness to fully participate in the international competition;(2) adhere to the innovation and development, to ensure stability level of profitability;(3) to strengthen infrastructure, improve the efficiency of management system;(4) to achieve a consolidated operating and providing universal banking services;(5) integration of business processes, to create a strong banking brand. In addition, in the ranking of the international banking industry, the China Banking competitiveness score is rising up incessancy, but this competitiveness can be sustained or not, will be decided in the process of internationalization of the Chinese banking sector and its operation mode.