A Study On Personal Wealth Management Service Of Commercial Banks In China

1.The background and the important sense of this thesis Personal Wealth Management Service (PWMS) of commercial bank is also known as "private banking business" in the west . It came out as a new banking business in the 1980s. The introduction of the PWMS meets not only the investment of personal financial business but also the growing financial needs of the residents. Meanwhile ,it opens a new space of profit growth for the bank. The PWMS has a development from traditionally personal financial business such as the money changers, savings deposits, consumer loans, valuables custody, personal trust and other traditional financial services,to offer individuals and families with personal financial management, financial advice, credit cards ,sell insurance policies, retirement plans, securities brokers, mutual funds and other financial services in all the innovation process. In recent years, with the competition become more and more intensifying between the commercial banks and the market-oriented of the interest rates, the profit of the traditionally company wholesale business gradually reduces and the credit risk continued to gather. With the establishment of China's market economic system and the transition of the banks that from specialized banks to the commercial banks, banks have become increasingly blurred between the original specialization.The cross-business of the banks grows deeper and financial competition is becoming fiercer and fiercer. The space of the traditional business becomes smaller and smaller and the space between saving and loan narrowed further.. At the same time, the risk of traditional business is increasing. In order to improve the service to customers, all of the banks are trying to expand the scope of services, increase services and developing new types of businesses. In addition ,since China has taken part in the WTO, foreign banks will compete with us by their hugely financial strength and the flexibility in the operating mechanism and rich management experience on quality clients. Increasing competition in the market forces commercial banks of our country to open up new business areas and to seek new growth space of profit. PWMS, as a new low-risk, low-cost, high-yield of the middle business. will not only increase the bank's intermediate business income, promote the overall development of the bank in retail business, but can also bring a deposit of the foreign and the own currency funds. Meanwhile, PWMS in China is facing a huge market demand and the tremendous business opportunities it shows has become the focus of domestic and foreign banks.2. The main content and views of the thesisFirstly ,there is a brief overview about the PWMS, then make an analysis of the environment and market demand of the PWMS. Starting with the current status of the PWMS, an analysis on the existing problems comes after. Combined with China's actual conditions, future trends , the rule of development of the PWMS and the advanced experience of the foreign commercial bank ,finally I advance the suggestion on the development of the PWMS in our country.The first article summarized the basic concepts and categories of the PWMS; shows the theoretical basis of the PWMS including Modigliani's life cycle including theory and the latest progress , the investment portfolio theory, capital and asset pricing theory. behavioral finance theory; pointing out the significance and necessity of the development of the PWMS that is located in.Given the important role of the market, the second major starting with the market that our commercial banks face to. The first part analysizes the market environment of the PWMS from both macro and micro levels in order to clarify the situation and guide strategy. The second part focuses on the potential of the whole market demand and the analysis on the reality .In this part ,a huge market and a bright future of the development.The title 3 gives an analysis on the main problem that our commercial banks are facing from various perspectives such as the effective demand ,production ,risk and so on, which offer a basis for the analysis on suggestion behind. In the appendix to this chapter, combined with the example, choose the new RMB financial products named"Hui cai"that was issued by Shanghai Bank on March 8th,2007,through the way of SWOT, in order to fully understand the STRENGTHS,WEEKNESSES,OPPORTUNITIES and TREATS that our typical production of the PWMS faces at the present time. All the work above in this title is to clarify the status and the deep-seated problems of the PWMS in our country.The foreign PWMS started early, experienced and mature developed .This paper arrange the comparison between different countries. Firstly ,I reveal the various models of the PWMS both in the domestic and in the foreign from macro perspective. Then I point out the gap between the domestic and foreign in order to provide an example and inspiration for the analysis of the suggestion in the behind.The fifth article is a bold prediction which is based on the clarify of the situation and the problems that our commercial banks are facing and the comparison between the domestic and the foreign PWMS. Though this prediction, I want to reveal the ideal state of the PWMS and to give a basis of the suggestion analysis in the end.The part 6 reveals the bottleneck that impact the development of the PWMS which can be benefit for the advancement of the suggestion in the final part.The final part is title 7 which is also the focus and the core of the whole thesis. This section is based on the whole analysis above and advance the suggestion on the development of the PWMS from various perspectives such as ,from macro to micro ,from the market to the body, from the way to the steps and so on.3.The main contribution and shortcoming of this thesisThe main contribution of this thesis lies in the reasons below. Firstly, the content is about the current hotspot ,so it is provided with novelty and the conclusion is useable. Secondly , a great deal of theoretics , data, and instance is adopted in this thesis to abet the arguments ,so the whole arguments are provided with persuasion. Thirdly, modern financial theories and personally financial practice are combined in this thesis. On the basis of collecting and owning abundant data, through the way of comparative analysis, standardized analysis and SWOT analysis, the thesis finally reveals the deep-seated problems, reveals the trend of the development of the PWMS and advance the suggestion on the current PWMS in our country.This paper attempts to use PWMS as a carrier and try to have a limited view of PWMS of commercial banks in our country in order to strengthen the sense of crisis and urgency of commercial banks of China and try to bring out my own opinion on the rapid development of banking industry. However ,due to the limit of my knowledge and ability and the lack of practice experience , errors and omissions of the opinion and the content are inevitable in this thesis.