Competitiveness Of China's State-owned Commercial Banks

Today economic and financial globalization are spreading and deepening at an unprecedented speed, thus most countries regard the progress of the financial industry as a vital part of economic growth. Among other things, the competitive advantages of banks are a key measure for the development of a country's financial industry. As far as China is concerned, with its accession to the WTO and the gradual opening up of its banking industry, it is more compelling and crucial to increase the competitive advantages of China's commercial banks,especially the state-owned commercial banks which play an important role in our banking system. Therefore, if an objective comparison and analysis of the competitive advantages between China's state-owned commercial banks and foreign commercial banks (including domestic foreign-owned banks) can be conducted, it will be vital for helping make competitive strategies and maintaining the healthy development of the financial industry, and it will also has a nation wide impact on the deepening of financial reform.At present, most analysis on the competitive advantages of commercial banks are conducted from the angle of the China's entire banking industry, while most analysis on state-owned commercial banks are confined to the research on their system and structures. In fact, the study on the competitive advantages of state-owned commercial banks, which is the backbone of China's banking industry, must at least include the two following aspects. First, domestically, the competitive advantages of state-owned commercial banks are revealed in the process of competition with other non-state-owned commercial banks. Thus an evaluation and prediction of the characteristics of the market structure of China's banking system must be made in the process of comparison.