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The Impact And Countermeasure Of Chinese Banking With Entry To WTO

Posted on:2004-04-17Degree:MasterType:Thesis
Country:ChinaCandidate:L M ChenFull Text:PDF
GTID:2156360092496989Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In regard to commercial bank especially state-owned commercial bank in our country, it will be a strategy problem that how to cope with the significant challenge resulting from the entry to WTO. Aim at the main problem and reason of that to put forward the countermeasure will have positive meaning in theory and reality world.The tortuous road that the Chinese financial industry traveled in the 20th century was just a reflection of the development of its banking industry. Chinese banking industry has get significant benefit from the reform, and effectively sustains the development of our national economy. Relative finance regulations have been enacted gradually, prudence accounting system adopted broadly and the quality of credit assets improved roundly. All of these giveremarkable improvement to the managerial system and operating conditions. At the same time, the banking are gradually penetrating into the field of insurance and securities to achieve mutual benefit. However, through the comparative analysis to profitability and competitive power of our banking, we can get the conclusion that there is enormous bridge between foreign and Chinese banks. Such as the lower capital ratio and profitability, the weakness of risk consciousness and less technology and so on. The main reasons are following: first, property right model are imperfect; second, the tax system has many deficiency; third, businessin various line are limited to the development of banking.Entry to WTO has two polar effects. While plunding the market share, customers and professional, the foreign bank will inject new blood into our rigescent finance system and create more opportunities of developing business in overseas. So the entry is the combination of challenge and opportunity.With the opening of financial markets on a global scale, with the distribution of services worldwide by network banks and comprehensive financial deregulation, the competition in thebanking industry will be more serious. The banking industry in our country will be faced with a host of challenges from various sources, within and without the financial scene, domestic and foreign, on and off the networks. Hence banks must alter their competitive strategy in the following ways: (1) expanding existing operations and developing new ones, timing the release of new products and services modes according to market demands, and entering such financial management while consolidating the traditional deposit taking, lending and remittance businesses; (2) financial innovations will be the key to success. The release of brand new financial products and the flexible adjustment of development strategies in light of market demands and customer needs are the key to maintaining a growth momentum. Innovations are the source of life for financial institutions; staying innovative is the only way to stay vital;(3) carrying-out stock company reform is the first step to improve competitive; (4) with the transit of managerial mode, establishing uniform financial supervise system is imperative under the situation. It is our relief that so long as financial reforms continue to progress in a prudential, orderly and comprehensiveway with development targets appropriately incorporated into the reform measures, our banking industry will gradually mature in the new century.
Keywords/Search Tags:entry to WTO, property rights, operating model, competitive power, financial supervise
PDF Full Text Request
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