Study Of The Development Of Postal Savings Bank Of China On The Background Of Dual Economic Structure

The establishment and joint development of Postal Savings Bank of China (this paper referred to PSBC) has the vital significance to change the imbalance of our national economic growth. However, PSBC is still in its infancy. Its loan business has just started and there’s far less consensus on its management characteristics and core competitiveness in banks internally. For strengthening PSBC, it’s necessary to affirm the correct direction and design a scientific development plan. Therefore, doing research on how PSBC accelerates its own development while promoting the dual economic structure transformation has important academic value and practical significance.The numerous existing researches show that the increase of financial structure ratio, which means the accounted proportion of the non-national financial institution loans in total national loans, can positively promote the transformation of the dual economy. As a special type of large commercial bank, the basic function of PSBC should be oriented as the strong support for weakening our country’s dual economic structure and its essential mission is to serve for’three rural issues---countryside, agriculture and farmers’ and small and medium-sized enterprises. If PSBC acts as an ordinary national financial institution, it will decrease the financial structure ratio and strengthen the dual economic structure. Namely this situation disobeys the original intention of its creator, our central government. Therefore the only way to achieve the function on weakening dual economic structure of PSBC is to make this national financial institution working as a local financial institution on its financing function. PSBC chooses the community bank business mode and adopts the flexible internal organization structure and operation pattern. Thus, the large scale PSBC is equivalent to an organic integrity consisting of multitudinous community banks and make full use of local capital to serve local economy.PSBC should apply the’self-support plus agent’mode to develop financial transactions according to the theory of the economies of scale and win-win mechanism. At the same time it should copy the business mode and financial products to all outlets according to the theory of economies of scope. These advantages are everlasting and can hardly be copied by other financial institutions in a long period. This capability of integrating specific resources is its core competitiveness. The dissertation proves that PSBC owns the economies of scale and scope advantages.Compare with the core value’to be universal retail bank with Chinese characteristics’ and the core mission’ serve for countryside, agriculture and farmers and small medium-sized enterprises, try to eliminate our country’s dual economic structure’, the current problems existing in PSBC mainly include:lacking of a development strategy with distinctive characteristic and banking comparative advantage, the unfinished community bank business mode, imperfection of corporate governance mechanism with community bank’s characteristic and still exploring the risk and internal control mechanism matching community bank business mode.The core points of its development strategy should be serving counties, serving communities, playing role as a large community bank, dedicating to develop retail business and rooted in the dual operating system of ’self-support plus agent’ and relatively independent community bank operating mechanism. PSBC should make its all outlets located across the country work in community bank mode and form an organic integrity containing all independent and interdependent branches. By performing the positive effect of economies of scale and scope, we can transform PSBC into an international top-ranking large commercial bank with strong core competitiveness and remarkable economic benefits.The business mode of PSBC divides into community bank section and non-community bank section. Its county branches belong to the community bank section. Other higher branches set up community bank division. Besides, PSBC owns comparative advantage in the loan pricing of its county development business. Micro credit loan and small business loan are core businesses in community bank section. The key of corporate governance is to solve the impulsion problem. Another essential thing namely its equity structure reform should focus on the diversification of investment subject aiming to build the equity structure in favor of implementing community bank operating mode and solve the principal-agent problem in ’self-support plus agent’mechanism. When PSBC try to carry out development strategy of large community bank to break up the whole into parts, risk capital management method plays a very important role in the risk control system.There must be some relative policy support in order to construct large community banks with Chinese characteristics. For instance, improving the rural financial ecology, accelerating the process of interest rate marketization, implementing differentiated supervision on PSBC, strengthening the’self-support plus agent’system at the law level and establishing the FDI(federal deposit insurance) system, all these policies can effectively promote the sustainable development of PSBC and let it provide powerful financial support on changing our country’s dual economic structure as soon as possible.