The Study On The Competitiveness Of Chinese Joint-stock Commercial Banks

Chinese joint-stock commercial banks are an important constitution of Chinese banking industry, and they play an important role in the competition of Chinese banks. As the outcome of the economic development and the financial revolution, the joint- stock commercial banks are taking on the mission of both inducing the market competition mechanism and probing the commercialization of the banks. Relying on good property structure and advanced management, they snatched a lot of market share from state-owned commercial banks, gradually weakening dominant position of state-owned commercial banks in the financial system. After more than ten year's development, joint-stock commercial banks have taken a market share of 16.2% and rank at the head part of the line.However, the scale of Chinese stock commercial banks is still too small to make threatening pressure to Chinese state-owned banks, and they have encountered many difficulties arise from both subjective and objective causes at the present. At the same time, the four state-owned commercial banks are still the hinge of the national economy and the financial system, processing the major part of China's financial assets, and with the more and more profound revolution, state-owned commercial banks have improved a lot in their competitiveness. On the other hand, with China's open to WTO, the pace of the foreign banks' entry to our banking market has been fasted. Our banking industry, especially joint-stock commercial banks, is facing great competition pressures. How to find an efficient method to improve Chinese joint-stock commercial banks' competitiveness under pressure of both state-owned banks and foreign ones, which is an important topic for improving competitiveness of Chinese banking industry.This paper is divided into five sections:Section one is a description of some concepts and situation. It includs: ①concepts of competitiveness and enterprise's competitiveness;②the introduction of several important theory on enterprise's competitiveness, such as core competence theory and WEF and IMD'S competence theory;③concept of commercial bank's competitiveness and the specific characteristics of commercial banks;④the introduction of some research on commercial bank's competitiveness, like《The Bankers》research and CAMELS theory.In section two, this paper put forward a banking competitiveness index system, which includes both qualitative and quantitative indexes. This system classifies banking competitiveness into three parts: the real competitiveness,the latent competitiveness and the environmental factors.The third part is the comparison between joint-stock commercial banks'competitiveness and state-owned commercial banks'competitiveness. It shows that state-owned commercial banks have such advantages as scale,safety and liquidity, while joint-stock commercial banks have stronger earning ability and latent competitiveness, but joint-stock commercial banks'advantages are very small.Section four is the comparison between joint-stock commercial banks and main foreign banks about their competitiveness. Although foreign banks have a clear advantage in most indexes, limited to the environmental factors, these advantages can not reflect in a short time. Therefore, local banks including joint-stock commercial banks will still have many advantages in the near future.The last part brings out some measures to improve Chinese joint-stock commercial banks'competitiveness. Firstly, joint-stock commercial banks should find their own characteristics, and make different strategy with state-owned commercial banks;secondly, joint-stock commercial banks have to improve firm management, which is the basic superiority to state-owned commercial banks;thirdly, more cooperation should be established between joint-stock commercial banks and foreign banks, and among joint-stock commercial banks themselves. This is a shortcut to increase joint-stock commercial banks'competitiveness.