Discussion About The Questions Of The Strategic Transformation Of China State-owned Commercial Banks

Great changes have taken place in the internal and external operational environment for state-owned commercial banks. Against the backdrop of capital constraint , financial disintermediation and rate marketization, these banks find it hard to stick to their traditional developing model. Thus strategic transformation, which is aimed at maximizing the value of shareholders, is in order. In this paper, discussion is focused on the major paths of strategic transformation including: 1) remodeling business growth pattern from extensive growth to intensive growth; 2) reestablishing risk management based on an overall risk management system involving risk management concept, system and technology and 3)changing the performance evaluation system from the traditional model that emphasizes the profit of the current book value and bad asset ratio into an appraisal system based on RAROC and EVA.