Research On Competitiveness Of State-owned Commercial Bank From Industrial Organization Perspective

With China’s accession to the World Trade Organization, to increase the openness of financial markets, China’s banking sector especially the state-owned commercial banks are facing with severe challenges. In2006, China fully opened the financial sector, with full market access for foreign banks the right to enjoy national treatment. However, the management level of state-owned banks has long lagged behind, a heavy historical burden, in the fierce market competition, the ability to obtain competitive advantage is related to our financial stability. This article from the economics, particularly industrial organization perspective, using rigorous methods of economic competitiveness of the state-owned commercial banks in question. Through the course of research on competitiveness and the major review of the basis of economic theory, relying on the paradigm of mainstream economics, industrial organization, is proposed for a state-owned commercial banks, competitive analysis framework; and apply the traditional theory of industrial organization of banking SCP paradigm market structure, market behavior typical of state-owned banks and, ultimately, the performance brought the quantitative and qualitative analysis; finally give the corresponding policy recommendations.