Who will be out

Author: Zhou Lu, Editor-in-Chief
Publisher:
Publishing Date: 2002-11-01
Features: In line with the commitments made by the Chinese government, China's banking sector will gradually complete comprehensive liberalization within five years after its entry into the WTO. Although after more than 20 years of reform, China has initially established a banking market system with diverse property rights institutions and numerous market participants, the overall competitiveness and business scale of China's commercial banks have rapidly developed. However, as we gradually integrate into the global financial tide, we must acknowledge the fact that the competitive advantages of China's commercial banks have not yet fully matured. Compared to foreign banks, there is still a significant gap, with evident shortcomings in capital strength, business philosophy, management models, and technical capabilities. In the two to five years following entry into the WTO, foreign banks entering the Chinese financial market will bring severe competitive pressures to China's banking sector with entirely different business styles, philosophies, and models, making it an urgent priority for China's commercial banks to reform. The curtain has risen, and a no-smoke war has been ignited. In the battle for finance, who will ultimately dominate? The authors of this book are cadres from various levels of the Shanghai Branch of the Bank of China, who have been fighting on the main financial battlefield since China's entry into the WTO. They keenly sense the powerful 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 successes and failures in their work, analyze the sources of the impact of foreign banks on domestic banks, and explore how domestic banks can achieve the maximization of interests through institutional, business, and management innovation. Without a doubt, this book is the response of the cadres and employees of the Shanghai Branch of the Bank of China to China's entry into the WTO, encompassing both rational thinking about the future and proactive, pragmatic exploration. 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 separate and appreciate the authors' experiences in practical work and their profound insights into the international financial situation and theories. Through this book, the Bank of China calls on industry and academia: the competition in the market 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.