On Centralized Mode Of Documentary International Settlements Of Bank Of China

With the process of China' s joining WTO in 2001 and opening Chinese financial market in accordance with Chinese commitments to WTO,favorable economic environments have created a broad market and a huge opportunity in the field of international business for Chinese commercial banks.However,strong challenges have been put up by foreign banks with their superiority in technologies, management and special talent.In order to cope with the increasingly competitive external environment and internal operational and managerial requirements, Chinese commercial banks have started to place improving their core competitiveness onto the strategic position.The essential way to reach the goal is to reconstruct workflow,broaden business scale and centralize intensive operation in order to improve service quality and minimize operational costs as much as possible.This thesis is trying to approach the subject of how to reinforce the core competitiveness of Chinese commercial banks through centralization of documentary international settlements by expounding the underlying reasons of centralization on the basis of the theories of Economies of Scale and Transaction Costs.Taking example of Bank of China,who is a leader in the Chinese market of international settlements with comparation between the practice of foreign and domestic banks on centralization,the thesis advances the feasible program of keeping BOC the leading position in the market and the improved centralization plan of documentary international settlements.The conclusion is finally reached that Chinese commercial banks may take the route of centralization of documentary business so as to raise operational efficiency,reduce operational costs,provide professional service to their clients and therefore enhance their core competitiveness.