Who will be eliminated

Author: Zhou Lu
Publisher:
Publish Date: 2002-11-01
Features: In line with the commitment of the Chinese government, China's banking sector will gradually complete comprehensive opening within five years after joining the WTO. Although after more than 20 years of reform, China has preliminarily established a banking market system with diverse property rights systems and numerous market participants, the overall competitiveness and business scale of Chinese commercial banks have rapidly developed. However, as we gradually integrate into the tide of financial globalization, we must face the fact that the competitive advantages of Chinese commercial banks have not yet fully matured. Compared to foreign banks, there is still a significant gap, with clear shortcomings in capital strength, business philosophy, management models, and technological levels. In the two to five years after joining the WTO, foreign banks entering the Chinese financial market will bring severe competitive pressures to China's banking sector with completely different business styles, philosophies, and models, making the reform of Chinese commercial banks an urgent priority. The curtain has been drawn, and a battle without smoke has been ignited. The decisive fight in finance—whom will dominate the tide? The author of this book is a cadre from the Shanghai Branch of the Bank of China, who have fought on the financial main battlefield after China's entry into the WTO. They keenly feel the strong pulse of the market, meticulously observe the changes and adjustments in the competitive landscape, and deeply experience the clash of cultural and institutional systems. They reflect on the gains and losses in their work and feelings, analyze the sources of impact of foreign banks on domestic banks, and explore how domestic banks can maximize benefits through institutional innovation, business innovation, and management innovation. Without a doubt, this book is a response from the cadres and employees of the Shanghai Branch of the Bank of China to China's entry into the WTO, containing both rational reflections on the future and proactive, pragmatic explorations. The publication of this work, which embodies the wisdom and efforts of the cadres and employees of the Shanghai Branch of the Bank of China, allows more people to share the authors' insights from actual work and their profound understanding of the international financial situation and theories. Through this book, the Bank of China calls on industry and academia: market competition is a competition of systems and culture. The opening of the banking sector intensifies the urgency of reform. Only by accelerating the reform of domestic banks can China's financial industry have a brighter future.