China's State-controlled Commercial Banks Competitive Analysis

20 years of reform and opening up, China's banking industry has made remarkable developments in the financial sector plays an important role in development. Many countries in the world will be the development of the financal industry as an important economic development indicator, and the competitive strength of the banking financial development measure an important parameter. Starting in 2003 the shareholding system reform of state-owned commercial banks to achieve good results, with the exception of the Agricultural Bank, the other three were successfully listed. As China's WTO commitment to the expiration of five years, the banking industry will be fully open to foreign investment, lifting of foreign bank ownership, and the establishment of conditions for business and other non-prudential restrictions, the process is the pattern of China's impact on competition in the banking sector, as well as What is the extent of the impact we need data to demonstrate. As of the end of 2007, the banking industry in China has a total 8876 financial institutions, state-controlled commercial banks face fierce competition in the market, in the context of this discussion it is necessary for their competitiveness.In this paper, three main issues: (1) analysis to determine the current situation of China's banking market; (2) in the banking market to determine the pattern of conduct on the basis of the quantitative analysis of state-controlled commercial banks and other joint-stock commercial banks competitiveness indicators, analyzes their relative advantages and disadvantages; (3) commercial banks in the state-controlled development, enhance the competitiveness of some Countermeasures and suggestions.In response to these problems, this paper used a combination of quantitative and qualitative analysis and comparison of analytical methods for comprehensive state-controlled commercial banks to analyze the competitiveness of the status quo. First of all, the state-controlled commercial banks on the macro environment, industry, according to industry economics theory, from the market concentration, market share and market entry barriers in three areas to determine the present situation of China's banking industry competition. Then, the competitiveness of the bank to build up a theory of reality of the competitiveness of potential competitiveness, competitiveness and environmental management capacity of the strategic competitiveness evaluation index system of state-controlled joint-stock commercial banks and other commercial banks in the competitiveness of a comparative analysis of indicators arrived at a state-controlled commercial banks a competitive advantage and a disadvantage.The results show that: (1) According to the theory of industrial economics the market structure of China's banking industry to judge the market of China's banking industry is going through from an oligopoly to monopolistic competition in the ever-changing process. State-owned commercial banks holding the monopoly of the extent of the current relatively high absolute market share advantage, but a higher degree of monopoly to monopoly did not bring the high monopoly profits, but formed a de facto low efficiency. Foreign banks in the domestic market share continued to increase; state-controlled commercial banks are facing a wide range of market competition. (2) to state-controlled joint-stock commercial banks and other indicators of commercial banks in the competitiveness of the comparative analysis, although the state-owned commercial banks holding a large market share, but competitiveness indicators as joint-stock commercial banks. Of state-controlled commercial banks a competitive advantage and disadvantages of the analysis, to find much improvement. In this paper, the relative strengths and weaknesses, from the state-controlled commercial banks to improve the business structure, to improve the capacity of financial innovation; establish and improve the incentive and restraint mechanisms, strengthening of internal control; enhance risk control, improve profitability; raise the standard of services to foster the core customers in four areas made to upgrade China's state-controlled commercial banks Suggestions competitiveness.