Sequence list of Commercial banks in Beijing Arranged in competitive power order
|
| 4/30/2005 1:1:0 Beijing CBD |
|
Dec.11th, 2004, foreign capital banks will be permitted to open the Renminbi service business. The ranking list announced by The People's Bank of China recently, sounded the alarm bell for four big state-owned commercial banks ahead of time.
Early In June, The business management department of People's Bank of China announced "Comparison Investigation and study Report for Competitive power of Chinese and Foreign capital Commercial banks In Beijing", in which they made a sequence for the branches in Beijing of foreign capital banks From external environment, management condition, service development ability, innovation ability and organization management ability five aspects, and The result showed that Beijing branches of four big state-owned commercial banks which hold 70% market share were at the bottom.
"Soft rib"of Chinese banks was exposed
The central bank this comprehensive competitive power place report stresses on the ability of development and innovation of bank business, we still could not make it clear of concrete value of each comparison standard, But we can sure that the Four state-owned banks lost too many points in this aspect.
Beijing branch of Chartered Bank is the No. 1 with a Score of 0.807, followed by the branches of Credit Lyonnais SA, The Hong Kong and Shanghai Bank, Bank of East Asia, Morgan Chase Bank, the American flag thus international well-known banks. The most anterior of the banks of China is the Beijing Branch of Merchants Bank of China, which is No.13, with a Score of 0.651; then comes the Beijing management department of China Minsheng Banking Co. Ltd., it is No.20; and the four state-owned commercial banks which place at the bottom are: industrial and commercial bank, Bank of China, bank for economic construction and Agriculture Bank, and their positions are No.34 to No.37, the score of Agriculture Bank is only 0.378.from the results of the last 13 banks are all of China, we can tell foreign capital banks in Beijing are generally holding much more competitive power than banks of China.
In fact, the total business of Beijing Branches of Chartered Bank, The Hong Kong and Shanghai Bank Beijing branch and the American flag Bank is inferior to 1/10 of that of the Beijing branch of Industry and Commercial Bank. It is reported, Beijing branch of Industry and Commercial Bank has the half business and 40% business mesh point in Beijing, and in the year of 2003, its profit is more than 10 billion Yuan, however, its leading position is unbecoming to its place of No.4 from the bottom.
According to a report from the central bank, they believe it is the defect in the structure of company management that restricted the promotion of competitive power of the center bank. Comparably, many of the foreign banks are listed companies, which have distinct property right and board of directors with perfect function as well as good management structure. In addition, Chinese banks are the inferiority in the competition for talent and the innovation ability; in addition, they are not clear about the market localization and Lack of the fixed price ability as well as the good cooperation and the competition between the banks, which is another important reason for their weak competitive power.
How can Chinese banks improve the competitive ability?
The report from the central bank pointed out that besides the fault of construction need to solve, the state-owned commercial banks must improve the competitive ability from following four aspects.
Firstly, the ability of innovation is not strong enough. Comparably speaking, the quantity and speed of Center capital bank in product innovation is not lower but even higher than that of foreign banks in Beijing, But the quality is unable to compare with that of foreign banks in Beijing. The report view is, Back of the relative construction and protection after the brand innovated, in this period during which the financial products replace so fast, we have few strong product?.The report criticized, the lack of correlation department drives the mechanism the reasonable disposition by the Center bank, Has affected the innovation ability.
Secondly, the ability of business development is limited. The report puts the blame on ?lacks of the explicit market localization and the subdividing of market?. Foreign capital banks generally choose the high-grade customer, what they seek is the profit not the quantity. But the state-owned commercial banks are difficult to choice the market, they need to do all the business available. In overseas, big banks such as The American flag are also nearly involve all the business, however they can make characteristic marketing and management.
Furthermore, lack of the ability of fixing price to the product. Controlling the interest rate of saving and loan, the Center bank is unable to calculate the single item product cost and the income; this problem is also mentioned in the report. The solution for this question certainly depends on the marketing of the interest rate; the ability raise must be carried on beforehand anyway. According to an official from the central bank research bureau, The bank fixed price system involves the risk assessment, the information technology level, the accounting system as well as the organizations and agencies management and the risk control, that Need our commercial banks to study early, we can't wait blindly.
Finally, the ability of gaining is so much depended on the difference between saving and loan. In the market of Beijing, the industry and commercial bank is strongest among the state-owned commercial banks, anyway, its proportion is just 8%, and this is nothing to compare with the foreign capital banks which average level is 40.7%. The business of Chinese banks mainly concentrate in the low end service such as settlement, receipts and disbursements, remittance proxy receipts and disbursements and so on. From now on, we should develop the business with high extra value, such as financial consultant, bank consortium loan service and so on.
|
|
|
