The Research Of The Development Of The Small & Medium-Sided Commercial Banks Of The China

Since the 1990s, as countries around the world have relaxed controls on the financial industry, business integration and institutional giant has become the mainstream of the international banking industry development trends, large-scale M & A war is rising, which becomes a serious threat to the development of small & medium-sized commercial banks around the world. In the competition between small & medium-sized commercial banks and large banks, small & medium-sized commercial banks have their comparative advantages in providing financial services to the residents and the small and medium enterprises, i.e., economical organizations, information superiority and lower levels of internal control, in a word, small & medium-sized commercial banks have their specific market functions.China's small & medium-sized commercial banks have just been set up for a comparatively short time, there is not any unitive academic definition yet, it is defined from the aspect of property rights of the existing structure or the asset size of the small & medium-sized commercial banks, in this article, it is defined from the aspect of property rights of the structure. China's small & medium-sized commercial banks have effectively met the needs of the economic system reform and improved the country's financial industry service standard since their establishment. China's sustained and stable growth of the economic and rapid development of non-public enterprises, has initially formed the institutional mechanisms and regulatory environment. This is conducive to the financial innovation, which also provides a market space for the development of small & medium-sized commercial banks. However, with the accession to the WTO commitment, China's financial industry has been fully opened to the world by the year of 2006. Facing to the competition of foreign banks and state-owned commercial banks, the small & medium-sized commercial banks have to survive within the "cracks" in an external environment with not strong community credit foundation, liquidity risks and increasing market risks; Small & medium-sized commercial banks themselves are facing a series of problems, such as the credibility and the brand are not strong, the market positioning is not appropriate, allocation of resources is poor, labor productivity is not high, cost control is not proper, levels of human capital is uneven, asset quality and risk prevention capacity is low, property rights mechanisms and internal control system is inadequate, and so on. The author proposes that if we want to develop the small & medium-sized commercial banks in China, we must absorb some points from Europe and the United States Government on the strategy of supporting small & medium-sized commercial banks and the policy of market positioning, establish and improve the accessing system and the deposit insurance system of small & medium-sized commercial banks, establish a sound credit rating system for the entire society. At the same time, China's small & medium-sized commercial banks should improve the system of property rights, the risk prevention mechanisms and the financial management system; carry out the strategy of market positioning and regional development differentiation on the basis of adhering to the people-based management.