China's Commercial Banks To Develop The Retail Banking Market Strategic Choice

In international banking industry, retail banking has nearly 100 years history and has made a very important contribution to the bank's profit. However, in China, retail banking is still at early stage comparing with that of international banking industry.In recent years, the requirement of diversified financial service in China has put forward higher criteria for retail banking in China ,at the same time, the traditional profit model is challenged by the more strict financial regulation and the reform of capital market, which has forced commercial banks to transfer from wholesale banking to retail banking. Since 2007, main foreign banks have registered in China and made the retail banking as the strategic focus. In order to compete with foreign banks, local banks have to get a rapid development in term of retail banking. In this case, this paper tries to propose some detailed strategies for local banks to develop retail banking through a series of analysis and research.This paper includes six chapters. The first section is the introduction such as the definition, the features and the development history of retail banking. In the second chapter the author make an exposition on the current situation of retail banking in local banks. The third chapter clarifies the weakness of the retail banking business in local banks. In the fourth section, development trends of international retail banking and the successful restructure experience of Lloyds bank are introduced by the author. Next, the author elaborates on the significance of local banks' restructure in current economic and policy circumstance. The last chapter is the most important one, in this section, the author puts forward proposals to develop retail banking of local banks in terms of business development, channels establishment, customer segmentation, product innovation, organization restructure and risk management.