Study On The Competition Of State-owned Commercial Banks

Finance is the core of economy. Yet the core of China's financial system is China's state -owned commercial bank. Facing the increasingly sharp competition between domestic and international bank, it is real a problem, which should not be avoided and needs solving as soon as possible, how to increase the competitive ability of China's state-owned commercial bank so as to be in an unassailable position both considering the reality and the future of it. The article has given a comparative analysis on the economic benefits, degree of security, the scales of banks, business system, ability to innovate between China's state-owned commercial bank and the domestic joint-stock bank and foreign bank on the basis of defining the connotation of competition. It is an undisputable fact that China's state-owned commercial bank has a low competitive ability after a great deal of comparison in data. Then the writer put emphasis on the analysis of the limitation of state dominative bank system, the limitation of the property right system and the organization of state-owned commercial bank, the structure of financial market, all of which has caused the low competitive ability of state owned commercial bank. At last the writer put forward a series of suggestions to increase the competitive ability of China's state-owned commercial bank by speeding up the innovation of stock system of state owned commercial bank, advancing the multi-operation of finance, quickening the dispose of the stock of bad loan and controlling the increase of it, increasing the quality of financial supervision, etc.