Analysis Of The Core Competitiveness Of China's State-owned Holding Commercial Banks

Since C.K.Prahald and G.Hamel raised for the first time the concept of 'core competence' in their article published in Harvard Business Review in 1990 the core competence theory has won world wide recognition and has become an new theory in the research of corporate development and corporate competence building.The development of the financial industry plays a vital role in the modern economy. Improving the competitiveness of the financial sector could improve the competitiveness of the overall economic system. State-owned holding commercial bank is the principal part of our financial system, improving its core competence is the key to the sustainable development of our financial industry. Along with our country joining the WTO and with the arrival of full opening of the financial sector, China's state-owned holding commercial banks not only face increasing domestic competition, but also face severe challenges from outside. So impersonally evaluating the competition ability of our state-owned commercial banks, analyzing their strength and weakness and guiding them to hold the opportunity deepen reformation is much significant to the development of our banking.This article first reviewed the main international evaluation and measurement standards about banking competitiveness, as well as the theoretical development of the core competitiveness. At the basis of previous studies I analyzed the core competitiveness from the following four aspects: business, capital, human and organization. And through comparing to foreign banks and domestic joint-stock commercial banks I analyzed the overall situation of the core competitiveness of China's state-controlled commercial banks. Then from the external environment perspective we come to a conclusion that our country's special economic system and environment has been a constraint of improving the core competitiveness. By comparing with the development situation of international banking and foreign firms' operation in China I further demonstrated that it is urgent that the state-controlled banks should improve their core competitiveness. By the end, the paper provides some suggestions and advice about how to upgrade the core competence ability of the state-owned holding commercial banks.