Exploring And Analyzing The Development Of Retail Banking For Commercial Banks In China

For the commercial banks in our country, retail banking is a new business field, in recent years; the development of commercial banks'retail banking business is very fast along with the health development and large-scale innovation of the financial market. The creative ability of our commercial banks has greatly and constantly improved. The kinds of the retail products become more and more rich, the scale of this business becomes more and more large and the service quality is improved fast. Retail banking is a strange word for our commercial banks several years ago, but right now, it has already became such a field with furious competition because of the strong developing tendency and amazing developing speed.On one hand, the competition of our commercial banks is very furious, each commercial promotes its retail products one by one; on another hand, after China joining WTO, the competition in this field becomes more and more intense because many foreign banks become parts of our finical market. Since December 11, 2006, our country opened the gate of finical market for the foreign banks and allowed them to be registered as legal bank in China, at that time, the war between our commercial banks and foreign banks started. Without doubt, foreign banks have rich experiences and mature system in retail banking; they are strong competitors for all the commercial banks in China.Although retail banking developed rapidly in our country, comparing to foreign banks, there still existing many problems for our commercial banks. How to solve these problems becomes a key point in developing retail banking.This paper has four parts, the first part gives the definitions of the retail banking and the wholesale banking firstly; then, compares the retail banking business with the wholesale banking business and analyzes the functions they contribute to the commercial banks; at last, makes a conclusion that the retail banking can help commercial banks well controlling the risks. The second part is about the present developing situation of retail banking in our country, in this part, the developing situation of retail banking is analyzed from two angles: one is the developing history of retail banking and the other is comparing the present situation of our country to that of the foreign countries. At last, there are many problems about retail banking existed in China, so this part also discovers such problems in order to find out the distance between our country and the foreign countries.The third part gives many methods about solving the existing problems and developing the retail banking business. Combining with the experiences of the foreign banks, our commercial of course can develop the retail banking business in their own way.The last part is a forecast about the future of retail banking, the activity and vitality of the retail banking in our country let us be full of expectations about its future.