It is an open secret that part of the reason behind investors' enthusiasm for the Chinese banks is the Chinese economy's rosy prospects and State backing for the banks.

As for capabilities in providing quality service and managing risks, which should be central to the competitiveness of any financial institution, the State banks still have a long march.

While the State's support can be a strength for the banks, it also has its downside. Currently, the top leaders of the banks remain government appointees, and human resources management still largely follows that in government agencies. Such arrangements, in many cases, can hinder the construction of a business-oriented management structure.

In addition, the banks' newly reshuffled executive boards also face the challenge of building more sound decision-making processes and making full use of the wisdom and experience of board members and independent board directors.

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