Small And Medium-sized Commercial Banks In China Market Positioning Research

After many years' innovation of financial frame, Chinese finance market has been growing toward mature and its system perfect. Under this background, the pattern of multi-bankers dominating the market has gradually turned clear. The situation of state-owned bank, stock bank and city commercial bank all competing for the limited market has almost come into being. Small-and-medium sized commercial banks find themselves stuck in this perfervid battle facing great pressure for survival.On one hand, compared with those powerful state-owned bankers, they are subjecting to disadvantages in the aspect of asset scale, outlets location, and the degree of E-commerce but also the source of capital, allocation of asset and even assurance of credit. On the other hand, they have to deal with the changes of the "rules of game" after China's accession into WTO as well as the severe challenges and impingements advanced by foreign banks. Obsessed in such fierce competition, small-and-medium sized banks can secure its competitive advantage and acquire core competence for sustainable growth in order to survive the competition only when they can develop and implement reasonable and clear strategies of market selection while make full use of its own advantage.This article mainly centers on the status quo of market selection for Chinese small-and-medium sized banks, analyses the problems involved and then proposes corresponding measures. The paper falls into five parts. The first part is preface, which points out the importance of studying the issue of market selection for Chinese small-and-medium sized banks by introducing the basic knowledge of banking system and then comparing the asset structure for different types of banksThe second part deals with the benefits of the study of Chinese small-and-medium sized banks. First, it helps to speed up the sustainable development of Chinese small-and-medium sized banks. Second, it makes for the optimization of resource allocation. Finally, it is good for them to face theopportunities and challenges by the accession into WTO.The third part analyzes the status quo of and problem facing market selection for Chinese small-and-medium sized banks. In the last several years, marketing concept has been gradually introduced into banking industry. Thus, banks are conscious of market selection during the operations but in the actual implementation, everyone wants to step into the profitable market and achieve good performance, which turns to be hard. Small-and-medium sized banks, especially, are those who developed defected strategies of market selection such as unclear market selection, severe same character and structure and being short of strategies layout, which results in serious kickback.The fourth part primarily introduces the theories of market selection for small-and-medium sized banks abroad and withdraws the lessons. At the same time, it suggests that Chinese small-and-medium sized banks shall follow the strategies of difference choice as the mainly strategy and the following strategy as the assistant.The last part analyzes the three measures for Chinese small-and-medium sized banks: segmenting small-and-medium sized enterprises for target customers, developing interoperation and internet bank operation.