Research On Competitive Ability Of Chinese State-owned Commercial Banks

After carrying out the reformation and open-door policy, with the process Of market-direction and international of Chinese financial industry . Especially, when we joined the WTO , More and more foreign banks are getting involved. And the other domestic financial organizations develop rapidly, the running environment of Chinese banking has changed profoundly. Now, it is facing increase market competition. The success and the failure of the foreign commercial banks have been showing that where there is competition, there are winners and failures, so the commercial banks must try hard to improve their competitive ability in the hot market struggle for existence and development.However, people still lack a clear understanding to the real meaning of the competitive ability of the commercial bank, therefore, the author gives a comparative systematic and deep analysis about it, taking the analyze as theoretical background. The author thinks that the competitive ability of commercial bank is the integration of market-occupying ability and profit-winning ability and risk-resisting ability of a bank and the others. He considers that the quality and the scale of a bank are two decisive factors to its competitive ability which we can use some index to measure it. In addition, System of bank and management of bank can influence the competitive ability of commercial bank.Then, he makes an empirical analysis to the competitive ability of the Chinese state-owned commercial banks. But, the result of the analysis is not satisfactory. There is a bag gap of competitive ability between the Chinese state-owned commercial banks and the foreign commercial banks.What is the reason for it? Which factors restrict the competitive ability of Chinese state-owned commercial banks? The author studies those factors one by one. Firstly, the qualities of the banks are too bad Secondly, the systems of the banks are not reasonable. Thirdly, the running scales of the banks are not appropriate measure. Fourthly, the running environments are not ideal .Facing the restricting factor, how to improve the competitive ability of Chinese state-owned commercial banks? About the question, the author makes a systematic exposition of counter-measures and methods that should be taken from seven ways. The first way is to make better the qualities of the banks. The second one is to reform the systems of the banks. The third one is to innovate the functions of the banks. The fourth one is to reengineer the banks. The fifth one is to promote the mergers and restructurings of the banks. The last one is to ameliorate the outer running environments of the state owned commercial banks.