Research On Institutional Innovation To Promote The Competitive Force Of The State-owned Commercial Bank In China

August 2007, the subprime credit crisis was triggered by the large number of subprime mortgage defaults, which hit the United States and other major world financial markets, eventually evolved into a global financial crisis. When the nest is overturned, no eggs intact, in the wave of world economic and financial integration, at the center of Chinese financial industry, the state-owned commercial banks are difficult to be immune in this financial tsunami. Although the reform of state-owned commercial banks in China have obtained short-term results once again, following Bank of China, Industrial and Commercial Bank of China and Construction Bank,the Agricultural Bank has gone publish on July 15,2010. When facing the complicated domestic and international economic and financial situation, reflecting implications of financial crisis, the future reform process still has many problems, prudent appropriate institutional innovation is the key to solve problems. Many researches, such as reflections on the crisis from a system perspective, evaluation of existing institutional arrangements, thinking about the future design of the system are extraordinary significant. It is helpful for the state-owned commercial banks in China to actively adapt to the open environment, reform and innovate according to modern commercial bank model. For the stated-owned commercial banks in China, the ultimate aim is to raise competitiveness in the fierce international competition.The paper centers on what is the root cause of leading to less competitiveness of the state-owned commercial banks? What is the role of institutional innovation to enhance competitiveness playing? How to innovate institutional arrangement of state-owned commercial banks? Firstly, Paper describes the background and necessity of institutional innovation for the state-owned commercial banks in China, and summarizes the scholar to the commercial bank institutional innovation and competitiveness research. Secondly, by reviewing the history and characteristics of institutional innovation of the state-owned commercial bank in China, around the reasons of weak competitiveness, studying the role and impact of institutional innovation for the state-owned commercial banks. From the analysis of the property rights system, management structure, organizational systems, internal control system and other aspects, we can drive the conclusion that it is very important to promote the system for the state-owned commercial banks in China. Thirdly, by defining the competitiveness of state-owned commercial banks in China based on security, liquidity, profitability and development of competitive force, constructing competitive force appraisal system of the state-owned commercial bank in China. In this foundation, through contrasting with and the domestic outstanding joint-stock commercial banks, we can get the performance evaluation.Last but not least, combined with developing trends of international bank industry, current situation of China's economic reform, the characteristics of state-owned commercial banks, we can propose the institutional innovation arrangements. Through the property rights system, corporate governance structure, organizational system, internal control system, we can put forward specific implementation of innovative approaches for the state-owned commercial banks in China, to achieve the objective of improving competitiveness.