The State-owned Commercial Bank Competitiveness Analysis

Abstract

Commercial banks, especially state-owned commercial banks are the main body of the financial system in our country. The cornerstone of the banks survival and development is competitiveness. In this paper I discussed the competitive abilities in two aspects: profitability and assets quality. The purpose was to reveal some hidden crises under the brilliant performance in state-owned commercial banks. Though state-owned commercial banks were the most profitable business, the profit growth was shrinking because of the fall in asset quality. The paper used the quantitative and qualitative analysis, the combination of theory and case analysis to find questions and solve problems. This led us to the conclusion that the key to enhance competitiveness of state-owned commercial banks is only to reduce the bad assets on the basis of profitability.