Development Of China's Small And Medium Banks

Small & medium sized commercial banks have been the emerging new blood of the commercial banking system in out country. At the meantime, they are facing some serious problems: the further developing has been confined because of the historic reason, institutional network problem and market credit standing; the enterprises lack enough ability to manage or to practice effective internal controls; the financial products are lack of their characteristic; the financial business category is dull, the business scope is limited as well; and the financial services couldn't meet the demands of the small & medium sized enterprises and personal citizens. All these have been threatened the banks' healthy developing, even their surviving in the near future.The environment of global banking has been changed largely with financial deregulation since 1970s. The banking began to pay attention to management of capital scale and financial supermarket. M&A has become a new competitive means for whole banking, resulting in the phenomena about survival crises for small-medium banks. However, the academic debates about the crisis phenomena have not concluded conformably. The author hopes to deepen smaller-bank study, make modern commercial banking theory better through analysis of smaller-banks' survival mechanism, growing mode and strategy selection. Through answer such questions as whether or not smaller-banks could survive? Why could they survive and how to survive? This paper provides a practical analytic frame for understanding smaller-banks and theirs growing rule accurately, demonstrating the altermode and practice operation aspects for Chinese smaller-banks in deep end, and offering a theoretic precondition for Chinese banking system reformation in a new era.After comparing the role, growing mode and management efficiency between large banks and smaller ones, the author points out the core of smaller-banks...