The Empirical Study On Capital Constraint And Business Transformation Of Small&Medium Sized Bank

After 10 years of our small and medium-sized banks, their business strategies and the development of basic convergence path, no show of strategic differences. Meanwhile, the retail banking business among clients and low occupancy non-capital operations, less capital occupy small business, and even more in its infancy. Most of the small and medium-sized banks deposits of individuals less than 10% of total deposits, deposits stability is Poor, the cost always remain at a high level. Lack of investment banks, trade financing, and easier for individuals and public financial management portfolio, and other high-end business development capacity, resulting in lower the overall profitability, particularly among non-business-oriented contribution margin income for small, intermediate business income clients mostly in 5%-6%, much lower than the bank 40-50% foreign advanced level.In the context of capital tough constraints, our commercial banks are facing unprecedented difficulties, on the one hand, the tremendous capital gap prevails, the small and medium-sized banks more serious constraints. On the other hand, capital supplementary difficulties , accumulating capability is very limited. Capital Management as the management of advanced international banks operating one of the central elements. Commercial banks in China to change the course of modern commercial banks, foreign banks from the advanced management and the use of the concept of economic capital for the gradual establishment of a core capital management system is the inevitable choice of their development process.Recent years,the business environment of international finance industry is undertaking an obvious and fast change such as a loosing finance regulation,more applied informational technology and rapidly developing global fmance.In the national finance market,interest and exchange rate reform keep on going.Under these backgrounds, the problems of strategy of the small and medium-sized banks are drawing more and more attention now.the strategy transformation of commercial banks means relying on the alteration of external regulation environment, competition environment,customer environment and technology environment,commercial banks carry significant adjustments and changes in their business structure, product stracture,domain structure and revenue structure.The strategy transformation of China's small and medium-sized banks needs to be a comprehensive,deep and systematical structure revolution including changes both in their develop strategy and management system.This paper is divided into six chapters, The 1st chapter is the introduction, introduces the purpose and significance of selecting this thesis, the present research situation in domestic and foreign country, the research content and research methods. secondly, it introduces the relate theory of capital constraints and the business reforms. thirdly, it analyses the present capital adequacy and restriction. fourthly, it is empirical research. fifthly, it discusses the measures to improve the capital restricting mechanism for Small and medium-sized banks in our country. At last, it is Conclusion, which Summarizes the thesis.