Asian Financial Crisis Essay. .

How to improve the competitiveness of my country’s banking industry in international trade

Abstract: According to the Chinese government’s commitment when joining the WTO, my country has canceled the restrictions on RMB business geography and customer targets last year. Limit the provision of national treatment to foreign banks and achieve full opening up of the banking industry. How to form a healthy and competitive Chinese banking industry and how to respond more effectively to the fierce competition from foreign banks is one of the problems that my country's commercial banks urgently need to solve.

Keywords: banks; international trade; competitiveness

1. The current situation of my country’s foreign trade and the role of banks

China’s accession to the WTO has provided a new direction for foreign trade. Growth has created a good environment. The adjustment of the global economic structure and the opportunities for international industrial transfer have caused the growth rate of my country's foreign trade to increase rapidly in recent years, and the contribution of trade to GDP has also continued to increase.

Despite the solemn commitments made by the Chinese government, the road to success must still go through many business risks, regulatory obstacles and cultural challenges. In fact, China's banking industry is not just a single market, but a combination of many banks of different types, sizes and geographical locations. Our many years of experience in China tell us that although China already has the prototype of a modern banking industry, foreign investors must still follow four principles to overcome dangers and seize opportunities.

2. Areas for improvement in the field of international trade of our country’s banks

Although our country’s banking industry is still being continuously improved, in the field of international trade, banks still have The shortcomings are mainly reflected in the following three aspects:

1. The management system is backward and the management methods are outdated. my country's banking management system is imperfect. Since 1997, my country's financial industry has implemented a strict "separated operation and separate supervision" system. While the risks in the banking system are reduced, the scope of business is also greatly restricted, reducing the way to achieve profits, making risks more concentrated, which is not conducive to bank management. In addition, Chinese banks do not have advanced flexibility in terms of management methods. Because of the lack of the advantage of independent operation, Chinese banks cannot adjust their strategies in time according to market changes. Moreover, due to the insufficient withdrawal amount of bad debt reserves and the lack of autonomy in writing off bad debts, Chinese banks have extremely limited ability to avoid risks in international trade. lack.

2. Trade financing objects are unreasonable and bank credit levels are low. The amount of new loans has been increasing in recent years, but banks mainly finance large commercial and trading enterprises. For some small and medium-sized enterprises, due to insufficient collateral or difficulties in credit verification, banks rarely provide large-scale loans, which makes some small and medium-sized enterprises Enterprises cannot obtain credit to meet the needs of trade development, but the supply of medium- and long-term credit and equity capital is still slightly scarce when the trade volume is large. A large amount of commercial bank funds have entered trade activities and become the lubricant of trade credit. However, the trade credit of various banks is still not enough to maintain the high growth rate of trade. In our country, we should fully tap the market potential and focus on developing new businesses such as factoring.

3. Banks have little innovation. To expand the business areas of Chinese banks, innovation in the banking industry should be actively encouraged. In the development process of my country's banking industry, there are several reasons that hinder the innovation of financial services. First, there is a gap in financial reform ideas between my country and the world. With risk hedging as the main purpose, my country adopts a management model of separate operations, which is not conducive to bank innovation in the field of trade. Second, the monopoly status of state-owned commercial banks has become a hindrance to other banks' business innovation. Third, financial innovation is realized through financial instruments. Although my country is currently focusing on the promotion and application of financial electronics, the security custody of customer data that arises in this process has yet to be resolved. In addition, the lack of overseas bank branches has also become a major factor restricting innovation. International settlement is often handled through the head office, which involves many steps and is slow. As a result, funds are in transit for a long time, which increases exchange rate risks and transaction costs.

3. Strategies to improve the competitiveness of Chinese banks in participating in international trade

China’s accession to the WTO and the gradual opening of the financial industry have led to a large influx of foreign banks. For our banks, this is It is an opportunity and a challenge. To this end, Chinese banks must adopt appropriate strategies to improve their competitiveness in the field of international trade.

1. Strengthen the transformation of internal mechanisms of state-owned commercial banks.

(1) Accelerate the pace of property rights reform of state-owned commercial banks. The successive listings of state-owned commercial banks show the country's determination to push state-owned commercial banks into the international market, let the market guide the bank's restructuring, and ultimately realize independent operations and be responsible for its own profits and losses. Fund-raising through listing has strengthened the bank's capital and enhanced its ability to prevent risks. The introduction of management experience has also played a role in promoting the reform process. The restructured bank has sufficient capital and a first-class management team to provide strong support for international trade.

(2) Accelerate the process of institutional reform of state-owned commercial banks. State-owned commercial banking institutions must change the previous practice of setting up branches at different levels according to administrative divisions. They should adopt the principle of streamlining and decide on the establishment and dissolution of institutions according to the needs of economic regions and business development. For branches with small business volumes and large losses, they should be flexibly adjusted according to business needs.

(3) Increase the development and training of comprehensive talents. The role of talent in international competition is crucial. At present, our country is extremely short of professionals who are both proficient in international trade and good at banking business.

Therefore, while maintaining the original talent advantages and preventing brain drain, more attention should be paid to the development and training of existing compound talents to continuously improve their professional quality, so as to adapt to the international trade business in the banking field under the new situation.

2. Strengthen risk monitoring in the banking industry. Facts have proved that strengthening the monitoring, analysis and risk warning of new situations and problems in economic and financial operations is a necessary measure to ensure the safety of assets. Especially when our country is developing loans to small and medium-sized enterprises in foreign trade, due to the uncertainty of interest rate changes, we should take safety precautions, establish a bank risk evaluation system, improve the effectiveness of internal controls, and adhere to risk-based prudent supervision.

3. Innovative business areas. To accelerate the pace of innovation in international business and better play the role of banks as financial institutions, first, we must open up the business market: first, expand the service scope of banks in the domestic market; second, explore and develop foreign markets; third, strive for the third financial services for foreign-funded enterprises and foreign-funded enterprises, and open up domestic and international foreign-funded customer business markets. The second is innovation in business varieties. While steadily increasing the amount of international trade settlement, according to the changes in trade patterns and customer needs, new business types such as bancassurance and factoring have been launched, and the company's resource sharing advantages have been used to open up product market sales and increase its popularity.

IV. Several suggestions for promoting the development of competitiveness of commercial banks

(1) Give full play to the role of the government and take active and effective measures to provide good conditions for cooperation between commercial banks and enterprises. Environment

First of all, we must effectively eliminate discrimination against commercial banks and enterprises. The government should provide certain support in terms of taxes and financial subsidies to small and medium-sized commercial banks that provide financing support to enterprises, and appropriately relax the requirements for small and medium-sized enterprises. Trust threshold to ensure that they can successfully obtain the funds needed for production; secondly, measures must be taken to properly deal with the existing non-performing assets of commercial banks, and the non-performing asset rate can be reduced through appropriate capital injection or auction transfer; finally, the government must reduce the unreasonable influence of the government on the business operations of commercial banks. Intervene so that it can resolve its own problems in a market-oriented manner.

(2) Give full play to local financial advantages and participate in the restructuring and reorganization of enterprises

Leverage the advantages of the good bank-enterprise relationship that local commercial banks have formed with local enterprises over a long period of time and actively assist enterprises in We should do a good job in asset verification, asset evaluation, property rights definition, etc., proactively help them work with relevant departments to formulate specific restructuring and reorganization plans, and put forward targeted opinions on handling claims. For enterprises whose claims and debts have been settled after restructuring or reorganization, other Funds required for normal production and operations can be given priority based on credit principles. At the same time, asset restructuring should be used to help enterprises become bigger and stronger, so as to enhance their vitality and promote their development.

(3) Strengthen the construction of commercial banks themselves and improve their ability to provide financing services to enterprises

First of all, we must adjust the credit structure, enrich the types of credit business, expand the scope of enterprise loan options, and actively support them. Reasonable funding requirements. At the same time, the credit policy will be made public, business processes and guarantee procedures will be simplified, and efficient and convenient financial services will be provided for enterprises' "secondary entrepreneurship". Secondly, we must strengthen high-quality services, such as opening credit cards, bill acceptance, discount businesses, and recommending personal checks, long-distance remittance and other settlement methods, so as to make it more convenient for the majority of enterprises to deposit, withdraw, remit, and exchange business.

Faced with China's accession to the WTO, the development of China's banking industry, the rapid development of world trade and fierce market economic competition, China's banking industry plays a decisive role in the international market, but the problems it faces are still It is very significant, because in this environment, our country’s commercial banks should correctly grasp the impact on international trade and strengthen their own competitiveness in international trade, so that they can maintain rapid and stable development in the longer term and contribute to China’s international trade economy. make greater contributions to development.

References

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[3] Huang Yajun, Wu Fujia, Commercial Bank Operations and Management, Higher Education Press, first edition, July 2005;

[4] Yang Xihuai.

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[5] Peter, Ross Commercial Bank Management[M]. United States: McGraw Hill, 2003