Researches On The Competitieness Of Chongqing Commercial Banks

This paper discusses the applicable issue of theory in banking practices. The author has conducted a systematic analysis on the data of commercial banks in Chongqing during the period 1999-2001,on the following six aspects:(i) assets-liability management,(ii) risk management,(iii)organizational management,(iv)marketing management,(v)human resources management and (vi)banking innovation management;and an objective and systematic evaluation is given to the competitiveness of the state-owned commercial banks in Chongqing. After discussing the advantages and disadvantages of the China's commercial banks and foreign banks,this paper develops an outline of competitiveness of and future trends for commercial banks in Chongqing,especially,for the state-owned commercial banks,thereby providing interesting and efficient decision basis for banks' operation and management and reforms.The objectives for this paper are the four big State-owned Commercial Banks,and ten shareholding commercial banks and one foreign bank. This competitive study consists of 60% of quantitative indicators and 40% of qualitative indicators. As the result shows,the state-owned commercial banks have taken up more than 70% in assets and deposits in Chongqing commercial banking field. However,the volumes of deposits and lending are decreasing at about 3% to 4% annually,respectively,the profitability of state-owned commercial banks is much lower than that of the shareholding commercial banks,whereas foreign bank is still under development. The competitive abilities for the state-owned commercial banks are listed as follows:1.China Construction Bank,2.Industrial and Commercial Bank of China,3. Agricultural Bank of China,4.Bank of China;the competitive abilities for the shareholding commercial banks is listed as follows:1. Bank of Communication,2. China Merchants Bank,while China Minsheng Bank is developing rapidely.This paper argues that,the state-owned commercial banks in Chongqing is "big but not strong",while the shareholding commercial banks are "neither big nor strong" with foreign banks "strong but not big". Therefore,the prompt task for the state-owned commercial bank is to "squeeze",to raise efficiency,and to establish real enterprise' culture "based upon human resources". The share-holding commercial banks shall continue development in bank management with their management concepts,avoid "short run behavior". The commercial banks shall insist on the management principle that"Maximize profits at the reachable region",to promote its core competitive abilities. At the same time,co-operation between banks is emphasized in the competition,so that all banks will benefit from the field. The Central Bank shall speed up the supervising methods,reforms of supervising,raise the extent of information exposure,and supply the "Resources Share" framework for commercial banks which will create an orderly fair competitive banking environment.This paper has adapted a research method combined with normative and empirical analysis,by utilizing Porter's competitive theory,World Economic Forum and other authoritative institutions and studies by Chinese scholar Jiao Jinpu. The result is applicable and valuable in the banking field.