The Study On Core Competitiveness Of Chinese Commercial Banks And Foreign Commercial Banks In China

With the end of the five-year transitional period about China’s accession to the WTO, foreign commercial banks begin to officially enter Chinese financial market. In the past few years, foreign commercial banks are continually increasing outlets and expand their business, and they have become an important part of our financial markets.With the intensifying competition between Chinese commercial banks and foreign commercial banks, how to deal with the challenges from the foreign commercial banks has become a pressing concern for Chinese commercial banks. In this condition, the studies on how the real level of the core competitiveness between them, if Chinese commercial banks can resist the offensive from foreign commercial banks, and how to further enhance their core competitiveness for Chinese commercial banks, which have become an important issues that Chinese commercial banks should discuss and it is the main content of this article as well as.This paper conducts a more systematic elaboration about their core competencies. Firstly, this paper builds the evaluation index system of the core competitiveness of commercial banks according to the theory of core competence. Secondly, this paper specifically analyzes the strengths, weaknesses, opportunities and threats of Chinese commercial banks and foreign commercial banks by using the SWOT analysis in management science. Thirdly, this paper selects more than30Chinese commercial banks and foreign commercial banks in China from2009to2012as the sample data to do factor analysis, and specifically address their respective core competitiveness in the post-WTO period. Finally, according to the relevant findings from the SWOT analysis and factor analysis, this paper puts forward the policy proposals on how to improve the core competitive power of Chinese commercial banks.The study shows that the overall level of core competitiveness of Chinese commercial banks is higher than foreign commercial banks in the contest with foreign commercial banks. Among them, the market share of foreign commercial banks can not be compared with Chinese commercial banks. In recent years, the operating capacity of foreign commercial banks also can not be compared with Chinese commercial banks due to the higher operating costs. However, foreign commercial banks in the mainland become Legal Person since2007and after six years of development and growth, its level of the core competitiveness also gradually be reflected. For example, foreign commercial banks have some distinct competitive advantages on asset security, innovation and service capabilities. Therefore, Chinese commercial banks should avoid their weaknesses, but also should pay more attention to make up for their shortcomings, learn from each other’s advanced technology and management experience in the process of cooperation with foreign commercial banks in order to continuously improve their core competitiveness level.