WTO&The Competition Investigation Of Commercial Bank Of China

When the human being entering a brand new century, we also became one of the members of the WTO. We are more and more clear about the deep influence on Chinese commercial banks by feeling the immediate changes and the process of globalization. To all the state owned commercial banks, they have already made great accomplishments during the past 20 years after opening to the outside world. All these accomplishments benefited firstly from the reform and open-door policy and the set up of the socialism marketing system. And they also mainly relied on the Chinese monopolized oligarchies and the protection of certain policies. There were also barriers on entering the Chinese market for foreign banks. The Chinese commercial banks are far from meeting the requirements of the international markets. The Chinese commercial banks will face opportunities and challenges of competition with the international commercial banks by joining the WTO. Foreign commercial banks will bring great pressures on the internal financial markets because of their advanced operation concepts, scientific decision system, full risk monitoring system, internal control system and market oriented human resource management abilities to adapt to market changes and financial creativities. How to create effective competitive strategy and improve the competitiveness of Chinese commercial banks are becoming the crux of the issue. The state owned commercial banks must change the operation concepts to adapt to the competition. Firstly the Chinese commercial banks need to reform the property right structures and at the same time to develop stock shared banks and reform the system of the commercial banks. We also need to adjust the industry structures which are not suitable to the international competition and promotepersonalized financial products. Secondly we should strengthen the reforms ofthe structures of the old state owned commercial banks and merge certain organizations. At the same time we need to set up market entering and exiting system. Thirdly we need to break the former human resource modal and improve the diathesis of the whole staff team. A scientific and reasonable performance appraisal system needs to be set up to attract, nurture and retain the most intelligent persons. Besides those reforms mentioned above the most important issue is to set the economic benefits as the eternal objective. By doing that we must strengthen our reforms on marketing and sales to finally set up the benefit and quality leading and customer centered operation concept. The assets structures also need to be reformed and the operation should change from singularity to multiplicity to increase qualified clients. The crux of strengthening the competitiveness of the commercial banks also include financial creativity, scientific renovation, risk monitoring and keep good image of the state owned commercial banks.