Research On Measures To Strengthen Management Of Personal Credit In Retail Banking In China

After its quick development on a global scale in the 1980' s, Retail Banking has become one of the main profiting businesses to commercial banks in many countries and areas. Over a long period of time, small banks ran retail banking while large ones did wholesale banking. Now that pattern has been changed. Since the late 1990' s, competition in retail financial market has become more intense and Retail Banking developed more rapidly. It is the "idol" of the day for the whole banking. In China Retail Banking is also becoming an up-to-date topic and trend.At present, Retail Banking in China is still at the initial stage of development. Its operating mechanism and system isn' t perfect. What' s more, there is a big gap between Retail Banking in China and in developed countries and areas. Our country will open financial market to foreign countries in an all-round way at the end of 2006. At that time, foreign banks are more competitive over Chinese ones in Retail Banking because they have rich experience and advanced technology. That sounds the alarm bell for our commercial banks to develop Retail Banking. In addition, as the rapid development of Chinese National Economy, people' s income kept on rising and personal financial property isincreasing quickly. So we can see that it is a golden opportunity for our commercial banks to develop Retail Banking, and is also an urgent task to do it. In China commercial banks are not expert in managing personal credit involved in Retail Banking. And they have no relevant technology and concept of personal credit. It is more important that system of personal credit in China is so imperfect as to hinder the development of Retail Banking. Just considering these difficulties in developing our Retail Banking, the author of this thesis tries to find practical measures for our commercial banks to develop Retail banking. The measure is to strengthen management of personal credit.There are four parts altogether in the thesis. In the first chapter, the author presents Retail Banking conception, classification and its developing history. She points out that more and more international commercial banks have already taken Retail Banking as the main resource to make profits. And she analyses and forecasts the future tendency of Retail Banking development. The second chapter makes concrete analysis of Chinese Retail Banking and its management of personal credit. At the lead of government policy, at the needs of objective economic growth and for the more intense competition in banking, commercial banks in China attached more importance to developing retail business and have produced certain results in the past few years. But the whole development isn' t satisfactory. There are still some problems in Retail Banking in China. The author thinks the reason is that Chinese Retail Banking is confronted with many difficulties in management of personal credit, such as imperfect system of personal credit, lack of good risk management culture inside banks, no establishing precaution system for personal credit risks and so on. In the third chapter, taking American Retail Banking as a good example, the author analyses its advanced experience in management of personal credit in detail. On the basis of the above three parts, the fourth chapter discusses the approach to overcome those difficultiesexisting in personal credit management of Retail Banking in China. First of all, in China the related departments should set up perfect system of personal credit. The author makes detailed description about the pattern, structure and concrete content of personal credit system. Secondly, banks themselves also need to do something such as establishing precaution system against personal credit risks and forming risk management culture of personal credit, which must suit the bank itself. It is very important for Chinese commercial banks' operation to strengthen personal credit management of Retail Banking. On the foundation of scientific research and analysis, the thesis puts forward some instructive tactics and suggestio...