The Research Of The Financial Innovation And Chinese State-owned Commercial Banks' Competition

After the competition theory being introduced into China, the researches about the state-owned commercial banks' competition emerge in endlessly. This paper chooses the analysis frame of industry competition and banking competition for reference, and chooses capital adequacy, return rate of asset, return rate of capital, rate of bad property, proportion between intermediary activity income and gross income and organize framework, comparing and analyzing the state-owned commercial banks' competition and foreign advanced banks' competition. The analysis shows that Chinese state-owned banks' competition is still quite poor.Compared with foreign advanced banks, the reasons for poor competition are various. The old system and the heavy burden are objective reasons. Meanwhile, intermediary business being not prosperous and technique falling behind developed countries are also important reasons.To find the way to improve the state-owed commercial banks' competition, this paper reviews the history and theory result of foreign commercial banks. The research shows that the financial innovation plays an important role on improving the competition of foreign commercial banks. On this basis, this paper brings forward the following measures to enhance the competition of Chinese state-owned commercial banks, such as: through the managerial system reformation of state-owned commercial banks, the system innovation is realized; through the development of intermediary activity, the activity innovation is realized; through the development and application of network, the technology innovation is realized.