The Management Countermeasures For The Bank In The Low-margin Stage

0ur nationa1 banking industry (only referring to commercia1 banks, the samehereinafter ) is stepping gradual ly into a low--margin stage as a result of repeatedlowering of interest rate, reduct ion of credi t ba1ance, imp1ementat ion of newfinancia1 and taxation pol icies, as wel l as exacerbation of competitions in thefinancia1 industry. As China's entry into WT0 draws near, our 1ong--closed domest icbanking market wi ll inevi tably merged into the international financ ia1 market, the1ow comDetit iveness caused by the structural reasons and poor management wi l l berevea1ed. In the circumstances that the wor1d's bank industry has been showingposi tive deve1opment in the recent year, the only way for our local banks is to takemeasures to upgrade their comprehensive strength and profitabi lity. The articletake5 a study in the management countermeasures for our banking industry in thisera of low margin. It introduces the profitabi l ity status in the world wide bankingindustry as well as the deve1opment of the management features of commercia1 banksin western deve1oped countri es. I t further analyses the macro--economic reasons andthe banks' interna1 reasons for the margin reduct ion in our banking industry andconc1udes that the fo11ow measures should be taken in order to improve the currentsituation and become more competi tive t l) To expedi te the modification of ourcommercia1 banks into join--stock system and set it as a basis for upgrading theirprofi tabi l ity. 2) To develop the credi t market and foster new gains for their margin,3) To improve service qual ity and increase customer groups, 4)To develop inter-mediate business and increase the proport ion of non--capi taI income; 5) To enharicethe level of system controI and carry on intense management of the bank assets, 6)To enhance cost accounting as a factor of interna1 development; 7) To carry on unitedreconstruction of tbe banking industry, speed up multi--management; 8) To speed upe1ectronic services and boost the conc1usion of development of on--l ine banks.