County Bank Transformation And Countermeasures

Ⅰ. Background Considering the overall situation, China's financial reform has been carrying forward and making progress in recent years. Especially in the State-owned commercial banks (SOCBs), the unhealthy loans are declining and the profits are increasing. But microscopically, the financial reform hasn't been fixed yet. Quite a few primary banks have been under the shelter of the state and difficult to meet the requirements of self-restriction and self-expansion. After China's entry to WTO, the course of financial reform is sure to speed up, and county area will be an important game. The practical immense gap and harsh competitions decide that the transformation is not a tiny repair or expediency, but a systematic fundamental change and process of strategic reformation. Recently every primary bank strengthens the reformation of allocating factors, organizational system, internal control, and operating model and has made a marked progress. However, they face many difficulties. The main problem is that the primary bank haven't gained the achievements in their reforms actually and maintained the reality. Now many county-branches still retain the old operating means by the planning economy, which is inefficient and inflexible. The former blind expansion and ill-considered operation lead to strategic fault in contacting the market during the turning period, thus the consequence is far more than a realistic threat they are faced with. With immense risk that poses a threat to branches in effect, a credit vacuum has arisen between the bank and the market. At present each SOCB is deliberating on reform and entering into the stock market, which is an inexorable trend in China's financial industry in future. So how the primary banks seek both a permanent cure and temporary relief as a whole become a precondition to restrict SOCB reformation and entering into the stock market. Certainly the issue of how to be active microscopically demands prompt solution and unable to evade.Ⅱ. PurposeAuthor has been working at a county-branch of SOCBs for more than 10 years, and has a deep impression of the operation of SOCBs. The authorrealizes that microscopic reform in China's financial industry will have to proceed systematically and aim at the target. On the other hand, she needn't imitate others or hang back in fear. She should not be overcautious and indecisive and should take the overall interests into account and finally win over a seat through the fierce competition. The article attempts to analyze the major problems existing in county-area finance and necessity and feasibility of transformation, in-depth discussion has concluded, some of the beneficial views and suggests.Ⅲ.Main Content And Viewpoint of ArticleFirst of all, the article analyzes the present situation and feature of county-area finance, pointing out the problems such as, that deposit system is single, service function has defects, and management loses balance. Also it analyzes various internal and external factors both favorable and unfavorable that county-area finance confronted.In the second chapter of the article, the author expounds the strategic meaning of microscopic financial reform, mainly from three angles—the necessity ,the feasibility and target of the reform, i.e. Why does it need to transform?In the third chapter of the article, the author puts forward the main content and train of thought, predicting some important problems and barriers during the bank's micro-financial process. Then he concludes it's a complex and long-term task.The fourth chapter of the article discusses the policies and suggestions. Firstly this part clarifies five misunderstandings, secondly it finds out four marketing positions, and lastly raises three key capabilities.The article holds new tendency in financial reform closely, with distinct prediction and realistic. At the same time, the paper studies the mathematics way, take the complex issue to simple ones. It is more useful and helpful.