The Research On Developing Strategies Of Small And Medium Size Banks When China Approaching WTO

AbstractAccording to the principle of "Trade without Discrimination" of WTO, foreign financial services organizations will be entering China to scramble for markets. Therefore, domestic financial services industry is facing serious challenge while China is approaching to the WTO. Small and medium size banks of China are the products of the reform of modern financial system, bearing the imprint of the times, and having their advantages. On the other hand, since global competition of financial services is escalating, the external environment of Small and medium size banks is becoming more and more complicated and challenging. In this thesis, the author is trying to explore the development strategy of Chinese Small and medium size banks after China becomes the WTO member. At first, the author made an analysis on the influence of the entry of WTO over domestic banking industry from the aspects of operation system, business development, and personnel management, referring to the relevant content of WTO provisions, then the author mainly focused on those growing and profitable Small and medium size banks as his object of study in this thesis, and comprehensively analyzed those banks exteriorly on their political, economic, technological and business environments though the theory of strategic management. Meanwhile, the author made a detailed investigation on the internal elements of Small and medium size banks, including their "3 characteristics", share-holding features, management characteristics, business operation, and personnel resources. Having Combined the present facts of China and advanced experience of foreign banks, and seriously analyzed the core competition capability of domestic Small and medium size banks, the author made the following conclusion: capital strategy, differentiation strategy and financial innovation strategy are the way-out for Chinese Small and medium size banks. Finally, the author also explained and further explored the key factors of implementing these strategies, i.e. establishment of financial share-holding group, implementation of tailored marketing strategy, reform of organization structure and personnel resources management, and financial innovation.