The Study Of Developing Commercial Banks' Retail Business In China

一,Main Contents and ViewpointsOn December 11th, 2006, the five year WTO transitional period ended. The financial industry and commercial banks start to face the competitive challenge launched by their competitors. The running environment of commercial banks in China has changed fundamentally. Capital constrains affect the development of commercial banks. Under the condition of interest rate marketization, the traditional way of management moves to its death. And after the surge of foreign banks, the low level competitive environment of domestic banks will change completely. After the analysis on the retail business of commercial banks, the paper tries to explore the developmental phase, stream of thoughts and effective ways of commercial banks'retail business in an open market. This will be helpful to improve the profitability and the service of commercial bank and strengthen the competitive force.The paper can be specifically divided into four chapters. The elaboration and the logical organization of the paper is like Chinese medicine, distinguishing sickness and then curing. The first chapter can be regarded as the doctors'checking on the patient. The second chapter and the third chapter are the process of distinguishing sickness accurately. They are the hard core of the paper. The fourth chapter is the way of curing which is crucial to the sickness.The first chapter mainly elaborates the concept, the content, the characteristics and the developmental tendency of commercial banks'retail business. It is the base of connected theoretical analysis. It lays the foundation for the further elaboration.The Second chapter is the overall judgment on the present situation of commercial banks'retail business in China. This chapter includes three aspects. The first section analyzes the new environment, the new factors which expedite the retail business. The second section analyzes gradual development of commercial banks'retail business, which is still at the initial stage. The third section analyzes the factors that restrict the commercial banks to develop their retail business.The third chapter is a comparison of retail business between domestic and foreign commercial banks and also is to distinguish the sickness. At present, the US has the highest degree of openness among the market economy countries. The first section is a brief introduction of the US commercial banks'retail business . The second section performs the comparison from the whole. The third section analyzes commercial banks'retail business in China that is at the initial stage and poses two strategies of fractionizing the market and cooperative competition.The fourth chapter analyzes the strategy of developing commercial banks'retail business in China. The first section elaborates how to improve profit and service from the angle of financial demand. We use the strategy of fractionizing customers to tackle this. Section 2 explores the countermeasures of developing retailing banking from the angle of financial supply and brings forward the path of cooperative competition.二,Main Contribution(1) Research stream of thoughts: As we know, the commercial banks'retail business is an interacting process between financial demand and financial supply under the financial supervision. When it comes to develop commercial banks'retail business in China, three aspects are involved in: the demand, the supply and the supervision. Financial supervision is an exogenous variable. Therefore the discussion of commercial banks'retail business is defined in the financial demand and the financial supply which also provide a complete and whole framework for discussing how to develop commercial banks'retail business in China.(2) Major points: The commercial banks in China should start from the reality of financial environment and complete the foundational work of developing retail business. In an open market, the cooperative competition is crucial to the improvement of service profit, and is important to the joint with the world.