Enhancement Of Commercial Bank Core Competence In China Based On Strategic M & A

In the economic globalization and financial internationalization context,competition among commercial banks has become more and more severe. Besides the concern over current existence, commercial banks must focus more upon future development . In order to survive in the fierce competition,the only way for China's commercial banks is enhancing their core competence . For any business, the mature core competencies that they have can not always be the leading because of the development of technology, products and management . So China's commercial banks must constantly enrich and enhance core competence in order to avoid losing its dominant position of the original core competence.Combination of mainstream business's growth pattern and the economic and financial environment which our commercial banks are facing, this paper propose that the strategic M&A should be selected as a method to enhance core competence.Based on the theoretical analysis about the M&A and the core competitiveness of commercial banks, this artical analyses the status of the core competitiveness of our commercial banks. Then from the regulatory environment, industry competition and changes in customer environments, we understand the urgency of enhancing the core competitiveness of commercial banks. The paper analyses the advantages and disadvantages of mergers and acquisitions,leading international banks'growth pattern and the economic and financial environment,form the above we draw a conclusion that our commercial banks should make use of M&A to improve core competence.Next we have a empirical analysis in order to confirm the conclusion.Through the comparative analysis of existing core competitiveness evaluation system, we construct a commercial banks core competitiveness evaluation index system by drawing on the CAMELS rating system,and the evaluation method chooses Entropy Method. Therefore, the paper completes the construction of the model. Then, select two cases for analysis. The case study is verified that through the implementation of M&A, core competence have been effectively enhanced.Combining of theory and cases,we put forward several recommendations on enhancing core competitiveness based on M&A.