The Research Of Improving The Core Competitiveness Of China’s Commercial Banks Based On The Value Chain

The emerging financial industry is booming and commercial banks continue to lose their market share due to market-driven interest rate and financial disinter mediation. In order to change this situation, commercial banks must actively promote financial product innovation, which can sharpen their competitive edge., What’s more, the core competitiveness depends on both internal and external value chain, in which consist of many complex factors. Thus, how to improve these factors becomes a vital question. Analyzing the value chain of commercial banks, we could understand how activities of commercial banks in the value chain influence its core competitiveness. Based on the value chain, commercial banks should promote their financial products and services based according to the market environment and changing customer needs, which could improve their core competitiveness.Based on domestic and international literature, the dissertation takes the value chain of commercial banks as a starting point to explore how value chain affects the core competitiveness of commercial banks. Based on this, the author establishes a core competitiveness evaluation system, and compares five state-owned commercial banks and five joint-stock commercial banks in China. The author proposes that commercial banks should build a new model to improve their core competitiveness. To be specific, in the aspect of internal value chain, the commercial banks should adjust and optimize assets-liabilities structure, improve risk management, financial marketing and human resource management. In terms of external value chain, the commercial banks should build a closer relationship with its upriver and downriver corporations. The innovation of this paper lies in its core competitiveness evaluation system built by the author and suggestions for improving the weaker elements existed in the value chain of commercial banks.