Research On Competitive Strategy Of Intermediary Business Product Of China's Commercial Bank After Entering WTO

This year is the sixth year after China entering WTO. Based on the permission of China's government, China had to open whole financial market to foreign financial institutes. On the year 2007, there are five foreign bank sub-brunch and four neighborhood office, plus ABN AMRO Bank is planning to open a sub-brunch. Foreign commercial banks are abundance in capital, advanced in management technology, have more ways in marketing and high quality efficiency on service. They are China commercial bank's main competitors. The traditional Chinese commercial banks'main profit is interest income including about 95% in whole profit. However, the increasing of this kind of profit is more and more difficult because of marketing rates and strong risk controlling. Financial electronic is the technology support of commercial bank's intermediary business in 21th century. If China's commercial banks continue to take interest income as there main business, foreign bank will become the leader in intermediary business. Intermediary business will be commercial banks'main developing direction. China's central bank published"The temporary regulation of the intermediary business of the commercial bank"on July 04, 2001, (temporary regulation for short). Chengdu government published"the eleventh plan of Chengdu's financial business development". The most important thing for commercial banks is how to take full use of the policies.The object of research is commercial banks'intermediary business. Based on the theory of intermediary business and China, foreign contrasts, we concluded that China's commercial bank must do intermediary business quickly. Minsheng bank is China's representative commercial bank. Its development on intermediary business is overwhelming. So we choose Minsheng bank to be the example in the research. Taking Minsheng bank for example, starts the research on bank's opportunity and chance. The main research point are development and different between Minsheng and other banks; the marketing chance and the changeable environment. At last, we know the opportunity and threaten, chance and weakness of Minsheng bank. We concluded that Minsheng bank have to develop new markets and new customers in Chengdu district. They also have to absorb and train more talented people here to develop their intermediary business.There are six main chapters in this thesis: the concept of intermediary business, the development and the gap between China banks and foreign banks in intermediary business, the environment for Minsheng bank of there intermediary business's development, Chengdu sub-brunch's resource inside the corporation, the strategy of developing intermediary business, the Countermeasures. The main contents are as below:The first chapter is the conception of intermediary business and the reason to develop intermediary business. There have no same conclusions of intermediary business and the conception is different between China and foreign country. Intermediary business usually confused with off-balance sheet and non-interest income. To solve this problem, the temporary regulation makes a clear definition: The intermediary business consists of the business based on approval and the business based on filing. Generally speaking, the intermediary business is helpful to improve both the quality of the assets and liabilities and the profitability of the commercial banks.The second chapter focuses on the comparison of the intermediary business between the Chinese commercial banks and foreign ones. In recent years, the intermediary business in western countries has improved rapidly, which can be seen from the following: Expansion of the business scales, increase in income, abundant products, and advanced services tools. On the contrary, the intermediary business of Chinese commercial banks is much less developed: low business scales and low income, narrow business scopes and few products and less developed services tools. However, development of the intermediary business in China banks was rapidly expanding. Take Minsheng bank for example, the increase income rate of this kind was 175.46% last year.The third chapter focuses on marketing. Sichuan is the financial central in southwest. Chengdu is one of the best travel countries in China."Play in rural"is developing fast in Chengdu. We can see that rural place in Chengdu has many potential consumers. So providing different financial product and designing characteristic product can provide profit to commercial banks.Chapter four is mainly concerned with the resource and environment in Chengdu sub-brunch. Chengdu branch took financial products for customers in ever different levels. They have many talented people working for them. They also have new products, new technology and young employees. We concluded that Chengdu branch has more advantages than other banks.On the basis of above-mentioned research, the thesis designs Chengdu Sub-Branch competitive strategic scheme of intermediary business product market in terms of SWOT matrix, analyzes and evaluates the scheme using Quantitative Strategy Planning Matrix (QSPM). It is certain that the first is the strategy of marketing penetration and the second are diversity and product of strategy as the competition strategy of intermediary business product of Chengdu Sub-Branch.In strategy implementation, the thesis proposes a series of suggestions to support the focus strategy, for instance: integrate organization of Sub-Branch and perfect the mechanism of investigate and inspirit, perfect operation model and enhance marketing, strengthen management of customer relationship, pay attention to development and training and management of human resources to the full, Enhancing the application of technology of finance, strengthen cooperation and so on.