Studies On The Existence And Development Of Small-Medium Banks

The environment of global banking has been changed largely with financial deregulation since 1970s. The banking began to pay attention to management of capital scale and financial supermarket. M&A has become a new competitive means for whole banking, resulting in the phenomena about survival crises for small-medium banks. However, the academic debates about the crisis phenomena have not concluded conformably. The author hopes to deepen smaller-bank study, make modern commercial banking theory better through analysis of smaller-banks ' survival mechanism, growing mode and strategy selection. Through answer such questions as whether or not smaller-banks could survive? Why could they survive and how to survive? This paper provides a practical analytic frame for understanding smaller-banks and theirs growing rule accurately, demonstrating the altermode and practice operation aspects for Chinese smaller-banks in deep end, and offering a theoretic precondition for Chinese banking system reformation in a new era.After comparing the role, growing mode and management efficiency between large banks and smaller ones, the author points out the core of smaller-banks development is the interaction between smaller-banks and community, financial demand of small-medium businesses and the residents is their leading exercise space. It is necessary for market competition to delaminate smaller banks, making those excellent to stand out. Smaller bank in different layer and phase has different value chain and tactics combination selection. The analysis about value chain, tactic factors and their picturing flow charts of Taiwan ShiHua bank during the four developing phases proved that the hinge of smaller-banks development is to definitude value chain structure and tactics selection.The paper puts forward "small-medium bank" is a relative and developed concept for the first time, making its connotation extened to traditional non-bank finacial institutions, combining internet and smaller banks development, and proving the importance of internet to smaller banks' existence. The paper surpasses simple studyof mameuver and countermeasure, points that the key of smaller banks existence and development is to make sure proper tactics combination on the base of analysis of smaller banks' value chain and competition tactic elements, searching own living space, thereout to advances smaller bank study to a practical stage. The paper considers that the characters of Chinese banking system reform have made smaller banks succeed, but it is also the restriction confronted smaller banks. It is indispensable for proper government intervention to improve the outer condition of smaller-banks. At the same time, small-medium banks must change themselves, finding right growing mode and tactics combination. It is the first time in this paper to combine imbalance of reginal economic development and smaller banks geographical distributing, growing mode and tactics selection, expatiating reginal characters of Chinese smaller banks growing mode, and to advance a concept about smaller banking ecotypic economy, indicating that no other than correct growing mode and tactics selection, Chinese smaller banking ecotypic economy would realize good circulation during dynamic development.This paper concludes that bank scale is decided by economic level. Larger banks and smaller ones development do not conflict, they have symbiotic relationship. Economic imbalance requires developing smaller banks. To obtain developing opportunities in banking ecotypic economy, smaller banks must select compatible mode and tactics. Chinese smaller banks and their development have some particularities other than those in other countries, proper government intervention is indispensable. However, theirs own innovation and tactics selection are more important.