Analysis Of OBSA Innovation Strategy Of Commercial Banks After Financial Market Is Opening

Since 1970s and 1980s, because of financial liberalization, financing securitization and more and fiercer competitions, the innovation of Off-Balance-Sheet Activities (OBSA) was started in western commercial banks and developed fast. OBSA also became the third important business besides traditional asset activities and liability activities. Commercial banks of China have engaged in OBSA innovations for a period of time, but still have problems such as very few original innovations, very low innovation techniques, and repeated lines of products. After entering World Trade Organization (WTO), we suffered many blows from foreign capital banks on business. OBSA is the core business as well as the main profit source of foreign capital banks. Therefore, they will focus on OBSA when entering Chinese financial market. At present, 5-year transitional time has been ended. Opening financial service market means Chinese commercial banks will compete foreign capital banks mainly on OBSA. How to come up with suitable OBSA innovation strategies for Chinese commercial banks will be a key to win the competition with foreign capital banks.The dissertation begins with a summary of OBSA innovation theories, and then analyzes the reasons and trends foreign banks organize OBSA innovations and identifies the current situation and characteristics of OBSA innovations in our commercial banks. Under the very research and practical background, the opening of financial market, the dissertation points out the opportunities and challenges our commercial banks are confronted. Based on the analysis above, the dissertation provides OBSA innovation principles, four innovation approaches and two measures. Since OSBA were exposed to varieties of complicated risks, the dissertation put forwards OBSA risk control strategies from the point of view of both supervisory agencies and commercial banks in the end.