Comparative Research On The Competitiveness Of Chinese Invested Commercial Banks And Foreign Invested Commercial Banks

In the end of 2001 Chinese government promised to WTO that National Treatment will be offered to foreign commercial banks with non-restriction of operation rights, location and business establishment modes. Chinese invested commercial banks were then receiving direct competitive shocks from foreign invested commercial banks. Currently, the transitional five- year period is due and this creates critical questions like how the Chinese bank industry is getting well prepared for the comprehensive competition afterward, how its competitiveness is running and what measures can be made for the entire industrial competitiveness. These issues have become the important subjects of academics and policymakers with great emphasis.This thesis firstly introduced the main theories concerning commercial banks competition, they are micro-banking theory, FDI theory and competitiveness theory.From the aspect of industrial analysis and FDI ration, the author made an empirical study on the situation of Chinese banking industry in competition and the motives and the effect of foreign banks accessing to China, detailed the five major competitive factors in an inter-checking structure of Chinese commercial banks and presented a SWOT analysis by using Porter's approach.Moreover, this thesis gave an empirical study for individual banks as a microeconomic entity, aiming at working out an index examination system. Based on the features and CAMLES approach, this thesis classified the competitiveness of commercial banks into three principal categories: realistic competitiveness, potential competitiveness and strategic management competitiveness, and the factor-index measurement system.Furthermore, the thesis pointed out the existing problems and main curing streams for Chinese invested commercial banks competitiveness by using hierarchical analysis and case studies of CCB and CMB as Chinese invested commercial banks and HSBC as foreign commercial banks.Finally, the thesis gave some suggestions and solutions to improve the competitiveness of Chinese commercial banks from both internal and external sides according to the findings.