Macau Bank Restructuring Research

Macao is a small city, but it got an independent economy and government.Under the independent financial system, Macao owns its local currency interms of M0P. There are four major development industries in Macao, thefinancial and insurance industry, travelling and gambling industry,normal industry and rea1 estate industry. The finance and insuranceobtain a high proportion at about 26.8% of Macao GDP in 1998. (theproportion of GDP was 25.2% in 1996)According to the new laws in Macao, the coareercial banks are able to havethe securi ties companies and insurance companies etc as parts of theirinter groups, which represent that commercial banks are providing andperforming in multi- functional businesses in Macao. But due to somespecific reasons, The loca1 banks are only performed strictly on one typeof business instead of multi businesses.After the handover to China, the first goal and mission for the local banksare to change their business model (from major earning of interest tonon-interest activities) and develop well in terms of multi-functionalbusinesses. E.g.make the branches business to be more automated by useof new technology. Having a further deve lopment in e-banking businessand personal money management such as securities, trust funds, credit card,insurrance etc.