The Development Of China's Private Banking

Private banking service is an advanced product for private financial management, which provides compromised,personal financial instruments package to rich private clients. Private banking is a service that manages and serves the client's assets, and gets commission for the services. With the accumulation of domestic household property, especially the development and expansion of high-income groups, private banking services must be the point that home and abroad banks want to capture. Domestic private banking will also have a fast and blooming development in future.The successful experience of running private banking by foreign banks is studied in the thesis. Taking the UBC for example, the thesis explains the basic conditions, products, services of successfully operating private banking by foreign banks. Analysis the demand condition and financial character of domestic high-income groups, shows the possibility of develop private banking in China. Present status and limits of domestic private banking development in China, then suggests the strategy of developing private banking in our country in respects of banking,government and society.Definition of private banking services is given in the first chapter: commercial bank provides the rich man with the special package advanced financial services of which the property management is core business; character of private banking service is pointed out: taking the high-net-asset client as potential customer, property management is the core business, high quality service is the main management strategy, household-office is the main organization form. The thesis describes the practice procedures of private banking, makes a comparison between the private banking and personal financing acquainted by public, gives the distinctions which outlining the attraction of private banking services.Switzerland is one of the earliest headstreams of private banking in the world. Geneva has still been the leading center of international private banking till now. For several centuries, Swiss wealth management system has attracted and gathered enormous wealth from all over the world, which has formed the Swiss style of a traditional mode of operation and has gained a high reputation in the international finance. Chapter 2 concludes the successful experience of Swiss banking in launching private banks, and introduces the services of wealth management, advisory service delivery and management model in UBC. Chapter 2 also interprets the private banking operation and its latest development trend.After giving the overall summary of private banking services and introducing the Swiss private banking practice, the latter three parts of this thesis analyze the basis, current situation and existing problems of developing Chinese private banking business, and learn from the advanced international experience in private banking, which promote the development of China's private banking business.The rise and development of China's private bank is on the basis of the growing financial needs of high-income groups. The high-income brackets are the direct object of private banking services. Therefore, we need to understand and grasp the financial behavior and preference of high-income groups in order to study service problems of Chinese private banking. Chapter3 cites the definition of "The Sunflower Financial Index Report" of Merchants Bank (people with personal or family financial assets of more than 500,000 Yuan) and makes a detailed analysis of basic and fiscal features. From series of data, China has the basis of launch private banking services to the customer with enough wealth population. Most of the high-income brackets are interested in financial services and hope that financial institutions can design suitable financial instruments and services for their needs.The fourth chapter briefs the development condition of Chinese private banking from the foreign personal banks scrabbling for the Chinese market as well as the China's native private banks just initiating a few clues. To domestic banks, their private banking is overall relatively junior, merely in the speculation of idea, some problems such as lacking in substance, the narrow concept of operation, the deficient variety, unable to meet the diverse needs of customers and the uneven quality of financial management personnel are outstanding. In addition to the constraint of some basal work such as the clients'lack of understanding the business of private banks, the personal credit rating agencies haven't yet to be established and so on. China's ongoing private banking business also faces a series of problems that need to be urgently solved.Judging from China's economic development, the number of assets owned by high-income groups and the urgent need of social management of the assets, the development of private banking is an inevitable trend. Domestic banks should take the advantages of them and learn from the experiences of foreign banks, develop to international market based on domestic market, deepen the R & D of international product, strengthen the cooperation with foreign banks, to make this business more powerful. How to upgrade the original retail banking business to personal financial management, the general sense of the personal financial business to the modern sense private wealth management of private banking, is a major task faced by China's banking. Due to the higher base and level of private banking services, accelerating the development of private banking services not only depends on the constant exploration and effort of commercial banks, but also the great support from the government and the public.The last part of the thesis designs the strategy on how to conduct private banking business and makes recommendations based on three dimensions: banking, society and government. China's commercial banks should learn from the advanced experience of international private banking, find the gap between us, consider countermeasures and put them into practice, take part in the private banking business practice actively. Only in this way can the private banking business in China be extensively developed.