Study On Development Of China Merchants Bank' Retail Banking

Around the 21st century, foreign commercial banks' tremendous changes have taken place in the retail banking. The position and function of retail banking among the commercial bank is rise constantly. In the large and medium-sized banks, such as Citibank, retail banking contributes over 40% of total profit. Retail banking increased the depth and breadth of the banking business to achieve economies of scale and scope economies, and opening up a new source of profit for banks.Along with the development of domestic financial markets, banking sector reform and development constantly, as well as the competition awareness and the product innovation of China's commercial banks to continuously improve. The variety of the retail banking is becoming more abundant, the scale of business gradually expanding. From savings deposit competition to "credit card war" in 2004, and from the mortgage market and personal financial management products to the endless, every main competition in the field of retail banking of China's major commercial banks is becoming fiercer. Several state-owned commercial banks and joint-stock commercial banks have made their strategic objectives to retail banking. Especially in 2006, many banks are listed in overseas stock markets one after another, which simultaneous regard it as the future development of strategic focus. With the implementation of "People's Republic of China foreign banks Management Ordinance" in 2006, foreign capital banks can operate residents RMB business. Foreign banks focus the same retail banking business, and have already begun to create large-scale retail banking outlets, and increased staff. China's banking sector has been the competitiveness of the retail banking from the simple business of competition into strategic competition.The importance of the retail banking has already formed the common understanding in the domestic banks, but how to develop retail banking? It is still a new subject to every bank. The research about development and reform of banking sector, including retail banking, have paid more concerns in both academia and banking sector. Though many of banks propose to make their strategic objectives as "The largest retail banking" or "The best retail banking", but they are still lack of specific and clear strategic objectives. Base on this, I would like to work from my real work experience, combine with the actual situation of China Merchants Bank, along with the study of the latest achievement in retail banking both at home and abroad, to make an in-depth analysis on the retail banking strategy of China Merchants Bank. This study has explained that the theoretical foundation of retail banking and the basic situation of China Merchants Bank. It has carried on in-depth analysis of strategy development on retail banking of China Merchants Bank. Moreover, it made a comprehensive analysis on the actual situation of China Merchants Bank to other domestic and foreign banks. These include discussion in detail of integration and innovation of the organization, human resource management, customer service, price mechanism, distribution channel, marketing strategy, decision process, technical support, modification and innovation of banking products, and other integration and innovation methods.