Analysis of the Core Competitiveness of Chinese Banks Based on Financial Statements

Abstract

China adapts to market trends and improves its financial system, unified large-scale commercial banks, joint-equity commercial banks, agricultural banks, and other commercial banking systems to create a competitive market. Increasing competition in the banking industry has driven all commercial banks to focus on improving their key skills. This paper analyses Bank of China's fundamental skills through financial statements and makes development-related insights. Core competences help organizations maximise earnings and sustain a competitive advantage, according to this paper. The paper analyses Bank of China's background and external environment, then its balance sheet, income statement, and cash flow statement. Industrial and Commercial Bank of China, Agricultural Bank of China, and China Merchants Bank are used as comparative objects to analyse Bank of China's operation from multiple perspectives. The study says Chinese banks are extremely liquid but less profitable than competitors. Bank of China's strengths include its liability management and worldwide diversification, but it also has a poor resource allocation, a single capital structure, unstable operating cash flows, and considerable external impact.