Sichuan Branch, China Construction Bank Loan Marketing Analysis

As the deadline for China to join the WTO and the threats brought by foreign banks are getting closer, competition between banks in our country will be more intense. In the credit market, the Sichuan Provincial Branch of china Construction Bank (CCB) is facing competition from the State run commercial banks, the national development banks and other monetary facilities in the province. Also, some foreign banks will gradually join in this market, and the capital market takes away some good customers. Therefore, ideas and practice of credit marketing administration become crucial to existence and development of the Sichuan Branch of CCB. This paper carries out analyses and suggestions for improving the practice level of this bank. The whole paper consists of seven parts. The first part concentrates on the necessity of implementing credit marketing with introducing its concepts. The change of economic environment urge commercial banks to practice loan marketing. On one hand, the banks must launch appropriate credit marketing strategy to make more profits because of the continuous lowering of interest rates, adjustment of finance and tax policies, intense competitions between banks and narrowing of space for profits. On the other hand, with the emergence of obvious characters of structural buyer's market, the loan supply to those customers under bad situation is getting less and less but , to those ones running their business well , the loan supply is even excess. The commercial banks then launch development strategies to solicit good customers. So, the Sichuan Branch of CCB must use marketing methods to get more customers.From the second part to the seventh part, this paper analyses the marketing environment and situation of loan business of Sichuan branch of CCB, with marketing methods of commercial banks. It studies the strength, week, opportunity, threat of this bank in credit market. Especially, the paper points out the bank's problems on the side of credit marketing. This paper suggests the branch to adjust its traditional market, also to intensify the marketing to expand new credit markets. It defines the branch's market orientation as following: Keep the fixed asset loan as the main product by keeping loan allocation to basic industry and approximating the fixed asset ratio to 50%. Intensify marketing in liquid fund loan to those good customers and adjust the direction of liquid fund loan allocation and improve the quality. Expand further retail credit business. This paper carries out approximate suggestions and countermeasures from the sides of product, price, place, promotion. It suggests the branch taking all the measures as followed: Adjust its product structure, take rational use of regulation function of price, solicit more good customers. Adjust business networks, simplify procedures of credit approval, spread credit lines and establish specialized ones to promote credit marketing channels. Spread customer manager system, absorb experiences of excellent products both of home and abroad with continuous innovation. The concept of marketing of commercial banks was just introduced to China and its implementation is still under exploration. Using marketing theories, this paper emphasizes its studies on practice works of bank. To strengthen its demonstration, it cites two cases 'Telecommunication' and 'Lafarge'.