China's Commercial Banks Personal Financial Business Development

Our China commercial banks have seen the change from the simple deposit-loan system of personal finance in the 1980's to the fantastic and various personal financial goods and services with the rapid increase of financial innovation now, not only have they verified the flourishing development of the financial industry, but also witness the course of people's becoming wealthier. In this process, personal finance of commercial banks represent itself from being trivial to essential, in particular, from edge to center in academic research field. With the current growth, research on this topic expand widely, on one hand, mounting research benefits the development of commercial banks and financial institutions; on the other hand, it profits the households to properly organize their assets and liabilities, maximize their utility. What's more, it plays a great role in the complete of related law and policy, still, it will effectively improve the living standard of people.In chapter one, we show the current development of internal and external academic literature, and bring forward simply the framework of this paper. In chapter two, then we define the connotation and extension. Next, we introduce the related theory detailedly. The main theories are financial innovation theory, asset-liability management theory, market-split and marketing theory. All of them lay the basis of for the expansion of the next three chapters.Chapter three gives a full elaboration of the development and current situation of our commercial bank's personal financial affairs. The commercial banks have experience four periods: emerging, formation, grow-up, rapid maturity. Followed was the current situation of the components of commercial banks' personal finance, which depict the development of personal finance with updated data. Chapter four analyses the problems embodied in the commercial banks' personal finance. This chapter includes two parts, the first one expounds the incomplete external environment, i.e. personal credit system, financial market, supervision frame. The next one talks about the lacking of some properties which they are supposed to own which contain the inadequate development of marketing, product-design and innovation conscious. Base on the problems analyzed in Chapter four, Chapter five concludes the corresponding solutions: improving personal credit system, promote the healthy development of financial market, bettering the supervision frame in the macro aspect; and improving marketing skill, enriching product bound and strengthening the research and innovation devotion in micro aspect. All of them will benefit the further development of commercial banks, and standing out in a world full of competition with foreign institutions. In this very chapter, we draw a conclusion that we should handle this opportunity under financial crisis setting, by merger and acquisition, commercial could switch their role to a better one through improve the entire innovation and marketing capability.