China's Current Monetary Policy, The Opportunities And Challenges Of Dbs Bank (2007-2008)

Concerning the acceleration of economy and inflation, China began to shift its monetary policy stance from "prudent" to "tightening" ever since 2007. At the beginning of 2008, tightening monetary policy was formally announced. In the second half of 2008, considering the influence of U.S. financial crisis and China slowing economy, PBOC reducted CNY deposit reserve ratio and base lending/deposit rates. This is a sign that China eases the monetary policy.Despite the shifting of China monetary policy, DBS Bank is in strong financial and capital position, and remains their assets quality good. Their capital adequacy ratio at approximately 18% is far above the China Banking Regulatory Commission's requirements. Its parent company, DBS Group, also keeps capital adequacy ratio at 13.8%, which is well above the Monetary Authority of Singapore's requirement. DBS Group's asset quality is one of the best in Asia and the " AA-" and "Aa1" credit ratings are among the highest in the region.The thesis analyzes the challenges and opportunities that DBS Bank is facing under the current macro economy situation, and provide the relavent advices and solutions. The thesis consists of the following 7 chapters:The first chapter introduces the background and object of the thesis.The second chapter is about the profile of DBS Bank and its development in China market.The third chapter analyzes the current monetary policy and the its international and domestic background.The forth chapter analyzes the 3 challenges that DBS Bank China Ltd is facing under the current monetary policy. They are from the increasing risk of compliance, credit and liquidity respectively.The fifth chapter analyzes the increment business opportunities and core competence that DBS Bank China Ltd takes advantage under the current monetary policy.The sixth chapter gives advices and solutions for the subject's sustainable development in China under the current monetary policy in four aspects: human resources, product innovate, customer resource and risk management.The senventh chapter exposes the China monetary policy appears to be shifted back stable from tightening. And thus provided relavent advice.