Analysis on the external environmental factors of commercial banks in China

The external environment affects the growth and profitability of commercial banks.Commercial banks need understand various factors in external environment and effectively analyze the external environment in order to have access to strategic competitiveness and sustainable competitive advantage.This paper analyzes external environment factors in three levels which impact the competitive advantages of commercial banks: the trends for economy and finance environmental factors in industry as well as factors of policies and regulations.Analysis shows that there are both opportunities and severe challenges for the current development of China's commercial banks.Only by seizing the opportunity and speeding up the development in order to meet the ever-changing external environment can China's commercial banks strengthen its financial competition in the market and win lasting competitive advantage.