Comparative Studies Between Local Banks And Foreign Banks In Their Competitiveness

China's formal accession to the WTO transition period was ended on 11 Dec 2006. China's full open up could actively promote financial reform and establish scientific operation method, establish risk-control mechanisms and improve bad debt ratio, etc. Facing the opportunities on China financial industry's full open up, how correctly and objectively analysis the competitiveness between foreign banks and local banks has a certain historical significance.The main conclusion in this paper can be concluded in the following point: China's financial industry's full open up could enhance competitiveness between local banks and foreign banks and bring a win-win result.This paper is divided into seven Chapters: ChapterⅠ: Background and framework. ChapterⅡ: Introduction on relevant competitiveness theory and research methods including Michael Porter's potential competitiveness theory and the five competitive forces, a brief review on several competitiveness research methods in the banking sector and introduce "Top 1000 World Banks, July 2006, The Banker". ChapterⅢ: Introduction on external environment analysis including brief description on macroeconomic environment, monetary policy environment, the progress on financial reform in China, stock reform of local banks and current status of foreign banks. ChapterⅣ: Introduction on competitiveness difference between local banks and foreign banks including competitiveness features of local banks and foreign banks. ChapterⅤ: Hot issues and trend analysis on competitiveness accompanied with China financial industry's full open up. ChapterⅥ: Introduction on S Bank-- a foreign bank's competitiveness in China. ChapterⅦ: Suggestions on enhancing financial industry competitiveness.In general, the full open up could set higher requirements for all banks. Benefited by the enormous challenges and advanced management experience, innovation, risk management, organizational systems, information technology and human resources from foreign banks, China's financial industry could be enhanced their competitiveness to a high level.