Foreign Capital Infusion And Establishing & Improving The Core Competence Of Chinese Shared Commercial Banks

With the quickening of China financial industry reform and opening, the competitive patterns and industry trends have undergone profound changes that have never experienced before. In the past, the competitive banking entities in China are mostly composed of Big Four commercial banks and 11 middle-or-small scale shared commercial banks. But upon Chinese entry to WTO, the foreign capital banks are the rapidly growing competitive banking entities. It is vital to post healthy financial development and deepen the reform of financial system to establish and improve the 12 shared commercial banks' own core competence based on the existing situation and future changes.The emergence of foreign shares is a new phenomenon that has caught our attention. The fact that foreign banks infuse capital into Chinese banks to take in shares is no doubt that they mean something else. The 12 shared commercial banks and the city-center commercial banks are the ideal share infusion target of foreign capital banks. But how to establish and improve the 12 shared commercial banks' own core competence by foreign shares infusion? This thesis integrates economic, financial and management theories to research on this practical task and give several policy suggestions.Chapter 2 traces to the source of theories on competence and applies competence model on the banking industry. The core competence in banking is also made up of three competences, including organizational framework, financial technology and human resource.Chapter 3 compares 12 shared commercial banks with Big 4 commercial banks and foreign financial institutions to make a comprehensive competence evaluation.Chapter 4 analyzes the distribution of foreign capital banking and the new phenomenon, foreign capital infusion.Chapter 5 analyzes the inner base and precondition to build up and advance the competence of 12 shared commercial banks. The last section gives several policy suggestions to establish and improve the competence: developing persistent one-up ability on some businesses by core product or service, strengthening risk management ability, enhancing financial innovation capability, and penetrating into capital market actively.