The Study On Trading And Financial Core Competence Of Bank Of China H Branch

Bank Of China, which played the role of doing traditional foreign exchange business in China, maintained advantages of trading and financial service. But during the steps of reforming Chinese financial system, more and more competitors wanted to share the market of trading and financial service. For that reason, the Bank Of China must find out a way to prevent customer churn in H district in order to keep its ascendancy. So it is necessary to do the research of core competence.The method of case analysis and empirical analysis were adopted in this paper, basing the latest research result of core competence as well as the development states of trading and financial service. Explored the approach that can build core competence for Bank Of China H Branch.Trading and financial service was the major research area. Six parts were divided in this paper, summarized the domestic and foreign research of core competence along with trading and financial service in commercial banks. Constructed a empirical model and evaluation system for core competence of trading and financial service. The business profiles of Bank Of China H Branch was analyzed under the perspective of macroscopic and business history. Through the qualitative analysis, the aspects of marketing capability, customer resource, risk management, creativity and brand image were evaluated. Through quantitative analysis, the recent business condition was assessed, including market position, profitability, non-performing loan ratio, contribution degree and the human resource structure. Case analysis revealed that, Bank Of China H Branch occupied the local dominant position for a long time. While as the challenges increased, the bank showed signs that lack of sustained momentum. Strategy design and analysis were carried out according to core competence condition. The results showed that, the bank should take cost leadership strategy and below 3 actions to promote its core competence:making full use of present resource, expanding the cost advantage, together with improving management mode. The conclusion of this paper can provide a reference for other banks.