The Development Of Private Banking Business Of Bank Of China

Along with the accelerated cumulation of the private properties,the needsof extended capital management from the enormous group of magnates become moreand more intensely. That makes the private banking become the engine power ofdriving bank internationalization and occupying the global peak industry ofbanking. While in China which is tending towards opening up, the understandingto the private banking is comparatively out of focus, and is mainly limited tothe level of potential analysis. In the face of the challenge of overseas privatebanking relocation in shanghai, and fierce competition of contesting for resourcesof high-end customers, Bank of China takes the lead in setting up the first privatebanking in China, which is the one and only so far. It shows that local andforeign-funded banks formally start the battle in the private banking field.This paper briefly reviewed the current experience from domestic scholars foroverseas private banking business, and the discussion for opening private bankingbusiness in China in the introduction. And in Chapter 1, starting from the conceptand history of private banking business, it clearly shows the difference betweenprivate banking and the service for retail banks and personal financing management.In chapter 2, it analyzes the current situation for development private bankingbusiness in China. And it figures out the reason for difficulties of continuingeffective service for high-end in current private banking in China, is becausethe singleness of financing management and immature system for productioninnovation. In chapter 3, by using "SWOT" method, we analyze the comparativeadvantage of developing private banking by Bank of China, and figuring out theadvantage of time, customer resources, financial capital, and resources locallyand internationally for Bank of China developing private banking, the disadvantageof bulkiness and inflexible system, service level, turnover of talents,distributed operation, and the difficulties which faced with no law protectionfor private properties, difficulties to judging validity of the properties,incomplete accountant system, strict control of foreign currency: Meanwhile, itraises the opportunity and challenge for Bank of China during high developmentof retail trade, innovation of tax system. The last chapter of this paper giveout the detail suggestions to Bank of China for either improving external financialenvironment and enforcing the construction of product, service, talents and branddevelopment. It also brings forward a series of detail solutions and methods forhow to develop and sell individualise products, upgrade relationship withcustomers in order to smoothly developing private banking for Bank of China.The contribution of this paper is using the situation-analyze method for thefirst time, to deeply study the private business developed by one local fundedbank in China, and the internal and external financial environment which faced.And brine forward some practical methods to facing the banking competition.