A Study Of Important Factors For Improving The Competitiveness Of Bank Of Shanghai

In current era, Chinese banking are facing a complicated and volatile environment: the American economic growth goes into uncertainty and the Europeans are stuck by debt crisis and emerging countries are also lingering with economic growth slowdown. On the other hand, in China the political institution and economic structure reform are still a long way to go. Moreover the pressure of financial disintermediation and interest rate marketization are getting increasingly higher, therefore it is essential to improve Chinese banking overall corporate competitive advantages. Being one of Chinese banking industry new member, the City Commercial Bank Industry has been growing up and playing a unique role over the last decade and now it become an important player among Chinese banking industry. However due to historical reason, in terms of internal operation management, business scale, territory coverage, risk management, service quality, product portfolio and information technology the City Commercial Banks relatively are behind the traditional large commercial banks, this leads to a weakness in its overall competiveness. Being China the first established city commercial bank, Bank of Shanghai is a typical example of China city banking transition to a truly commercial bank. A study on its competitive advantage influence factors and improvement strategy is of important not only to its self development but also significant to the whole city commercial bank industry and other type of commercial bank and firms.By studying the origin, definition and implication of competitiveness theory, as well as elaborate the general corporate and commercial bank competitive advantages, this article elaborated analyses the domestic and foreign commercial bank competitive strategies, consequently author established4important factors that explicitly influence the commercial bank competitiveness:Environment Competitiveness, Actuality Competitiveness, Potential Competitiveness and Sustainable Competitiveness. Next step, with multiple regression analysis techniques, author also studies various competitive indicators extracted from Bank of Shanghai and other16commercial banks listed in stock exchange A market so as to obtain the overall and category competitiveness ranking. By this study, author obtained the important factors that influence the competitiveness of Bank of Shanghai. Furthermore, author conducted a comprehensive SWOT analysis on Bank of Shanghai to outline the complete picture of its corporate advantages, disadvantageous as well as corporate opportunities and threatens to reveal its real competitive environment. Moreover, author summarizes his proposals on improving the competiveness of Bank of Shanghai. This study provides an optional analysis tool and solution for Bank of Shanghai to improve its competitive advantage as well as a reference for other Chinese city commercial bank that aiming for competitive advantage improvement.This study reveals that due slow development, lower capital and yield, higher income cost, narrowed net interest margin and weak E-bank technology, Bank of Shanghai is behind its16competitors on overall corporate competitive advantages. Therefore author proposed3solutions to upgrade its competitive advantages: speed up business transition, develop unique new business and improve efficiency of various business channels. Meanwhile, author also points out that Bank of Shanghai needs to take action to enforce its capital and finance management, enhance risk management and internal audit, improve information technology and optimize HR management.