Competitiveness Of China's State-owned Commercial Banks

The station-owned commercial banks hold a dominant position in national financial system. After our country joined WTO, competitive in domestic banking industry will be more intense. So strengthening competence of the station-owned commercial banks becomes the key to the banks' continuing development.According to the theory of enterprise's competence, the concept of bank's competence has two respects. Firstly, it can be considered as visible competence which is the market show of competence, secondly as potential competence which are factors effecting competence.The peculiarity of banking industry determines that bank's visible competence include profitability, liquidity, security, market power and managing efficiency, and influenced by management of the bank, resources of the bank and environment around the bank. So the evaluation of bank's competence includes assessment of visible competence by quantity index and assessment of potential competence mainly by quality analysis.On the basis of the study on bank's competence, combined with factor analysis of the station-owned commercial banks' competence, the paper designs the basic frame on analyzing the station-owned commercial banks' competence. With the frame, the writer makes an empirical study on present condition of the station-owned commercial bank's competence. From the result of the empirical study, we know the competence of the station-owned commercial banks not only far lower than the commercial banks in developed countries but also lower than domestic stock commercial banks. The direct reasons of the situation are the backward management but the source lies in the stagnant of the reform of the banks' institution resources, such as property right system, organization structure etc, and limited developing of the banks' material resources, so as human resources, enterprise culture, information technology etc.Based on the above research the writer puts forward some proposals to promote the station-owned commercial banks' competence. The proposals are on the following three respects: improving the competitive environment, quickening the reform of property right and choosing effective competitive tactics.