Who Will Be Out? - Reflections from the Banking Industry

Author: Zhou Lu, Editor-in-Chief
Publisher:
Publish Date: 2002-11-01
Features: In line with the commitments made by the Chinese government, China's banking sector will gradually complete full liberalization within five years after joining the WTO. Although, after more than 20 years of reform, China has initially 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 following WTO entry, foreign banks entering the Chinese financial market will bring severe competitive pressures with entirely different business styles, philosophies, and models, making reform an urgent priority for Chinese commercial banks. The curtain has risen, and a battle without gunfire has been ignited. The decisive fight in finance—whom will dominate the tide? The authors of this book are cadres from various levels of the Shanghai Branch of the Bank of China. They have been striving on the financial front line after China's WTO entry. They keenly sense 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 from foreign banks on domestic banks, and explore how domestic banks can maximize benefits through institutional, business, 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 WTO entry. It contains 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' practical experiences and profound insights into 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-up of the banking sector has made reform even more urgent. Only by accelerating the reform of domestic banks can China's financial industry have a brighter future.