A Study On Strategic Alliances Of Local Commercial Bank In China

With the development of global economy, the competition in financial industry has drastically increased. This article illustrates the different developing track of the national commercial banks and local commercial banks, which shows why they are not at the same level at the strength. Comparing the national commercial banks with the local commercial banks in the status analysis and their superiority and inferiority, then, they can cut down the developing time by summing up the experience of the national commercial banks and the foreign commercial banks, specially the foreign commercial banks, which have a more perfect system and set up a good example to the local commercial banks.And the one of the best solutions is to set up strategic alliances. There are many different patterns of strategic alliances. Generally speaking, there are three major forms of strategic alliances, which are: the alliance that combines enterprises among themselves, the alliance that combines enterprises with other financial organizations and finally the alliance that combines enterprises with information technology enterprises. Depending on its own situation and strategy, every local commercial bank should decide whether to take one or more strategic alliances. At the same time, the banks should also take care of theinherent risk due to such forms of strategic alliances. At the end of the paper, there is also the example of a Shanghai local commercial bank that shows how to determine a proper pattern in order to organize a strategic alliance.In order to averse the risks of local commercial bank strategic alliance, this article do some analysis by dynamic game, Stackelberg model and adverse selection, and so on.At last, the local commercial bank has to recognize that the core competence is the key of developing the long-term competitive advantage and source of adding the value of the bank. The author tries to find the problem through the analysis of the status of local commercial bank's core competence and on the basis of reference, discusses the ways to cultivate the core competence of the local commercial bank. The local commercial bank should go on with its revolution, strengthen its management and keep innovation so that it can be small but excellent, specialized and strong and survive and develop in the competence.