The Analysis On The Competitive Environment Of State-owned Commercial Banksin Shandong Province

As China is finishing its transitional period of WTO entry, Chinese financial market enters a new stage. In this context, China's state-owned commercial banks face fierce competition both in domestic and overseas markets, especially in Shandong province which is eastern coastal province of the economy. On one hand, many changes take place in the macro environment such as legal environment and economic environment. On the other hand, many new joint-stock commercial banks and city commercial banks develop rapidly in Shandong province. More and more foreign banks enter Shandong market and expand the business scale with obviously competitive advantage. Both domestic and foreign banks constitute a great threat to state-owned commercial banks. In face of the new situation, China's state-owned commercial banks should take effective efforts. Therefore, it has vital significance to study the competitive environment of state-owned commercial banks in Shandong province.Firstly, this paper defines and compares competition in banking industry and competitive environment of banking industry. Then it divides competitive environment into micro competitive environment and macro competitive environment, and gives a brief introduction to some model related to evaluation of the competitive environment of banking industry.Secondly, this paper defines the types of commercial banks in Shandong province and analyzes the competition between them.Thirdly, based on the PEST analysis model, this paper expatiates macro competitive environment of state-owned commercial banks in Shandong province, stating political and legal environment, economic environment, social environment and technical environment respectively.Fourthly, based on "five forces" model of Porter, this paper expatiates micro competitive environment of state-owned commercial banks in Shandong province, stating client and supplier bargain ability, potential entrant, substitute and competition degree respectively.Fifthly, based on the above analysis, we carry on the empirical analysis on competitive environment of state-owned commercial banks in Shandong province by using the analytic hierarchy process and experts'survey, and then evaluate the result of the analysis.Sixthly, according to the above analysis, this paper analyzes in detail the strengths, weakness, opportunities and threats of state-owned commercial banks in Shandong province with SWOT method, and then makes a related strategic analysis.Lastly, this paper proposes some policy suggestions about how to improve competitive environment of state-owned commercial banks in Shandong province from macro and micro perspectives.