Research On The Strategic Development Planning Of M&A Loan Business Of Commercial Banks

Since the reform and opening up, China's economic size and strength has changed dramatically. But, along with the economic development, our country's irrational industrial structure and low industrial concentration stand out. The outbreak of the global financial crisis makes the domestic and international market environment into the winter. Weak global capital market and low asset prices provide an opportunity for our business to complete industrial concentration through reorganization and acquisition. The support of relevant national policies is a further boost to the prosperity of M&A market. M&A business requires a lot of money which rely on their internal accumulation is generally difficult to achieve. This provides a good opportunity for commercial banks to involve in M&A loan business. At the same time, Chinese commercial banks are facing two major difficulties:First, with the full opening of Chinese financial markets, market belongs to Chinese commercial banks is squeezed by foreign banks; Second, the domestic capital market with the sustainable development and improvement, traditional business of banking is constrained by financial "disintermediation" phenomenon.Booming M&A market, competition from foreign banks coupled with the constraints of financial disintermediation provide commercial banks with a motivation to develop M&A loan business. On the one hand, M&A loans promoted the development of M&A transactions; on the other hand, it brings a new profit point to commercial banks. The M&A loans stem from the Unit States and other more developed countries and has more common market. But in China, considering slashes the risk of banks, M&A loans business is prohibited in principle. Until Chinese Banking Regulation Committee issued "guideline of risk management of commercial banks M&A loans" in year of 2008, the M&A loan business has really developed.After the issues of "guideline of risk management of commercial banks M&A loans", our Researchers began to study about the M&A loans. So far the results have been limited, and most relevant research has focused on risk management of M&A loans, little has focused on the overall development strategy of the M&A loan business of commercial banks. So, this thesis has studied about the internal and external environment of Commercial Banks'M&A loan business, by introducing strategic management theory and has analyzed the obstacles, costs and risks of Commercial Banks'M&A loan business. At the same time, this thesis has demonstrated the necessity and feasibility of China's commercial banks'M&A loan business in theory and practice. Commercial banks can carry out M&A loan business very well. But, there are also many problems during the actual operation. This thesis put forward the concrete proposals, which benefit the development of domestic Commercial Banks'M&A loan business.This paper is divided into five chapters, the main contents are as follows:The first chapter describes the background and significance of Commercial Banks'M&A loan business.The second chapter discusses the theoretical basis of domestic commercial banks'M&A loan business, and further analysis the value of M & A loans to banks or corporations.The third chapter analyzes the internal and external environment of domestic commercial banks'M&A loan business:huge external market provided a broad space for the M&A loans; the resources that commercial banks have make the development of M&A loans with the real possibility. From the external environment, competition from foreign banks and mixed trend in banks make financial innovation urgent, huge demand and macro-policy support create opportunities and premise for the M&A loans; See from the internal conditions, commercial bank has not enough talent and experience for the M&A loans, but commercial banks have advantage in the capital, reputation, customer resources, information resources, geography and culture, Which are the internal securities for the M&A loans.The fourth chapter describes the current development of commercial banks' M&A loan business. Through the analysis of domestic commercial banks'M&A loan business, the author gets the conclusions that there are many problems during the actual operation. For example, there is lack of strategic planning, the ways of choosing target companies are unscientific, the level of risk management is low, and there is a shortage of talent and experience, the system of property rights, regulations and policies are not imperfect, and so on. Then, further analysis of the cost of and risk factors of M&A loans is marked, because we think only the correct assessment of the costs and risks of the M & A loans can lead to good methods.The V Chapter discusses how to actively expand the M&A loan business on the basis of the above analysis. Running M&A loan business require commercial bank sit itself at a strategic position, performing and organizing activities in a scientific way, led by principle of long-term development, differentiation strategy, cooperation, competent personal, then to establish a healthy and practical operating system. It also needs commercial banks to strengthen the control of risks.