Study On The Strategic Transformation Of China's Commercial Banks

Since the1990s, Chinese commercial banks began the first strategic restructuring. They changed from traditional commercial banks to modern joint-stock commercial banks completely. In the meantime, something such as value-oriented resource allocation, incentive & restraint mechanism were established primitively. Capital management model and financial accounting system were close to regulatory standards or international practice gradually. Asset size, profitability and core competitiveness had been upgraded greatly. All this laid a solid foundation for the future rapid development of commercial banks.However, with the progress of foreign commercial banks, we must admit a fact that there is still a big gap between foreign commercial banks and Chinese commercial banks in many parts. Now the Chinese commercial banks are still facing many problems and challenges. From another point of view, compared with the international commercial banks, the pressure from the international financial crisis was low for national commercial banks. So, Chinese commercial Banks should seize this rare opportunity and accelerate the development of strategic transformation. In particular, to enhance the force of market competition and keep a long-term sustainable development, the Chinese banks should accelerate the implementation of strategic transformation.In recent years, the strategic transformation has become an important task for the commercial bank in the market completion. Both of academia and the bank sector reach an agreement concerning the strategic objective of restructuring of commercial banks. However, if commercial banks want to achieve strategic transformation, there are still some different views in academic circles. Therefore, we want to speed up "secondary" transition process by answering the regarding strategic transformation of commercial banks.In this paper, theoretical methods combine with empirical research methods, analysis of the strategic restructuring of commercial banks need for good practical significance, To make a brief description of the commercial banks, the main contents is about strategic transformation. The paper makes a comparative analysis of the typical and international commercial bank's practice, including their implementation of the strategic transformation of the background, which will give enlightenment for the Chinese commercial bank's strategic transformation.Finally, the paper makes a brief description of experiences of commercial banks in implementing strategic transformation. For more important, significant changes in the implementation of Chinese commercial banks have entered the business strategy of the important historical transition opportunity, we have the strategic restructuring of commercial banks facing internal and external factors that the basis of comprehensive analysis on Chinese commercial banks to accelerate the strategic transformation of a number of proposals.The structure of the paper is as below:The first part is Introduction.In the second part, the paper does focus on the theoretical basis of the strategic restructuring of commercial banks. Author expatiates some main problems, which includes commercial banks, the concept of strategic restructuring, characteristic of commercial bank, functions of the strategic restructuring, the difference between home and abroad, the main factors that drive strategic transformation, the strategic transformation of commercial banks the main contents of the final strategic transformation of the commercial banks should pay attention to make a brief overview of the main issues.The third part of the paper makes a comparative analysis on the experience of western commercial bank's strategic transformation. Since 1980s, it mainly concentrated on the business model and growth modes of implementation of the change. After 1990s, because of economic globalization and the impact of the Internet economy, commercial banks had a second transition in developed countries. This part talks a lot about strategic transformation of commercial banks in major developed countries. For example, the analysis of background of strategic transformation, main contents include strategic transformation of Chinese commercial banks, and provide references.The fourth part gives the pattern and suggestion for Chinese commercial bank's strategic transformation. In recent years, Chinese major commercial banks finished the joint-stock reform basically. But a large number of foreign banks began to develop rapidly in domestic markets, which deepens market competition. Based on analysis of the structure for the profitability of the banking industry, and compared with Western countries, the profitability of the current structure of Chinese commercial banks is still in lag, the typical feature is the spread higher proportion of total revenue. Thus, the paper briefly introduce some restructuring measures of commercial banks, including vigorous implementation of the scientific and technological progress and business innovation strategies, the internationalization and integration timely advance, to continue to deepen the integration of internal resources, to improve customer service capabilities, to develop rural financial services actively, to pay more attention to social responsibility. The paper also gives the some proposal that Chinese commercial banks promote strategic restructuring and says that the bank should promote the strategic transition actively and steadily to finish transition goals gradually in various dimensions. Firstly, we must transform business models and foster a new banking culture; Secondly, we must give full play to comparative advantages; Thirdly, to promote customer and business restructuring, integrated management; Fourthly, confront the excess liquidity challenge scientifically.In the last part, the paper draws a conclusion.