Motives Of Merger And Reorganization Of Financial Institutions With The Feasibility Study

In today's global financial market, what is the most outstanding might be the emergence and development of the financial institutions. Compared with international markets, the development of the financial institutions in China is still in its initial stage and expected to get well developed in the coming years. It will make great contributions to the stability of international financial market. In view of this situation, it is of vital importance to do more research work on the financial organization. However, during the financial globalization and with China's accession to WTO, how will the local financial institutions, as an important branch, improve the financial environment, quicken the transformation of business mechanism and strengthen their overall competitiveness. This is a new problem faced in the reform of the financial system.Based upon the theory, this paper analyzes the annexation and reorganization in financial industry in the world and China, expounds that the local financial institutions in Hunan Province should, after China's accession to WTO, change the traditional development strategy accordingly and puts forward that, in the entirely new business environment and faced with new opportunities and challenge, development is based on innovation. Meanwhile, the feasibility of the strategic target is studied in the paper in accordance with the present situation of Changsha City Commercial Bank. Quantitative analysis and qualitative analysis are combined in the paper, which is divided into four chapters with about 50 thousand words. In the first chapter, a simple definition of annexation and reorganization of financial industry is presented, and the motivation and mechanism are also discussed. In the second chapter, on the basis of the brief history of the development of financial annexation and reorganization and an analysis of its characteristics as well, the paper examines the future trends with three typical cases. Based on the basic introduction to the development of China's financial industry, third chapter makes a systematic study of the optimum development speed, scale, structure, performance and risk aversion. In the fourth chapter, feasibility is made of the establishment of City Commercial Banking Group. Based upon the above analysis and the present development of Changsha City Commercial Bank, the paper offers some suggestions on the strategic development of the city commercial banks of Changsha, Xiangtang ,Zhuzhou and Yueyang and the annexation and reorganization of the banks in Ningxiang county, Wangcheng county, Changsha county and Liuyang. The paper ends by studying the case of establishing city commercial bank in Liuyang.The author has spent more than one year in collecting and sorting out relevant data and in writing. The time taken and, efforts made show the author is strict. It is hoped that the author's viewpoints and solutions to problems in question will be of some practical value for local financial institutions in their innovative development and in their decision-making and operations.