Competitiveness Of State-owned Commercial Banks

Today economic and financial globalization are spreading and deepening at an unprecedented speed, thus most countries regard the progress of the financial industry as a vital part of economic growth. Among other things, the competitive advantages of banks are a key measure for the development of a country's financial industry. As far as China is concerned, with its accession to the WTO and the gradual opening up of its banking industry, it is more compelling and crucial to increase the competitive advantages of China's commercial banks. Therefore, if an objective comparison and analysis of the competitive advantages between China's commercial banks and foreign commercial banks (including domestic foreign-owned banks) can be conducted, it will be vital for helping make competitive strategies and maintaining the healthy development of the financial industry, and it will also has a nation wide impact on the deepening of financial reform. At present, most analyses on the competitive advantages of commercial banks are conducted from the angle of the China's entire banking industry, while most analyses on state-owned commercial banks are confined to the research on their system and structures. In fact, the study on the competitive advantages of state-owned commercial banks, which is the backbone of China's banking industry, must at least include the two following aspects. First, domestically, the competitive advantages of state-owned commercial banks are revealed in the process of competition with other non-state-owned commercial banks. Apparently, this comparison is conducted in order to increase the competitive advantages of all banks in China not at the expense of other non-state-owned commercial banks. Thus an evaluation and prediction of the characteristics of the market structure of China's banking system must be made in the process of comparison. Second, a comparison of the competitive advantages between state-owned commercial banks and foreign banks in terms of all concrete indicators and mechanisms is made, through which the weakness of state-owned commercial banks in international competition could bedetected and eliminated, meanwhile the future competitive and development strategy could be determined.Based on the above-mentioned thinking, the thesis is divided into four chapters.The first chapter presents the context of the competitive advantages of state-owned commercial banks. Two topics are the focus of this chapter. The first one is a summarization and evaluation of the history of state-owned commercial banks, in which it draws a conclusion that the development of the state-owned commercial banks must keep pace with the particular requirements of the progressive economic reform. The second one is about the difficulties that state-owned commercial banks have encountered in the process of development and presents the topic of the competitive advantages of state-owned commercial banks. First of all the related concepts of the competitive advantages of commercial banks are elaborated. After that, the three problems concerning the competitive advantages of state-owned commercial banks are explored.The second chapter is a comparative study on China's state-owned commercial banks and China's non-state-owned commercial banks. It comprises three parts in detail. First of all, the status quo of the competition is studied between China's state-owned commercial banks and non-stated-owned commercial banks in terms of their market shares, profits and staff competence. The next part is an equilibrium study on the market competition in China's banking industry. In the last part, the competition scenario and the performance of the banking industry is examined.The third chapter is a comparative study on the competitive advantages between China's state-owned commercial banks and foreign commercial banks. It is conducted from two directions. The first one is a comparison of their competitive advantages in terms of ownership, corporate governance structure, internal operation mechanism, creativity an...