China Minsheng Banking Development Strategy

Under the background of developing the socialism market economy and deepening reforms in financial system, some joint-stock commercial banks came into being in 1990s. They have many common characters such as strength and development trend. Going on the premise of supporting the market economy, exploring for financial reforms and controlling risks effectively, they have all made rapid progress and found footholds in the market. Although they are just sprats compared with the four large state-owned commercial banks, they have specific advantages, including that they have established the corporate governance with flexible operation, clarified their orientation in markets, set up a relatively effective stimulative system, and built up the innovative spirits. In this transition era of consummating the socialism market economy and intensifying reforms in financial system, these banks are facing new competition, which means they must grow bigger and stronger. In the new competitive environment, research on development strategies gets more and more important. The establishment and implement of development strategies determine banks' position in the future market. Through studying development strategies of China Minsheng Banking Corp., LTD. (CMBC), this paper discusses the general process of strategic research in such mid and small stock-joint banks and puts forward some constructive suggestions in development strategies of CMBC, which are also helpful to other joint-stock commercial banks.The paper includes three parts:In the first part, we analyze the structure and market of the banking sector depending on the theory of banking strategic management. According to the theories of corporate strategic management and international banking strategic management we establish the foundation for the following theoretical research. At the same time, we have found that commercial banks have special strategic management because of characters of banking sector, so it is necessary to discuss the particularities of banking including business lines serving mid and small enterprises and individuals.The second part stresses CMBC's conditions, other joint-stock banks' development and the competition in this industry. These discussions underlie CMBC's establishment of the development strategy.Based on the foregoing statements, the third part focuses on CMBC's development strategy. Mentioned in chapter four, the development strategy of CMBC is to build up the core competitiveness by continuous innovation, close the customer relationship with the private enterprises, chase to be a qualified competitor in the international market, and become the leading one of the joint-stock banks. The key of the development strategy is to build up the core competitiveness by continuous innovation, which includes human resources and CI, digitalized banking and restructuring. Measurements are put forward in chapter five, covering innovation, customer relationships, human resources, brands, private banking, marketing, and strategic co-operation. Integrating above factors is the strategic way to establish the core competitiveness, and realize the strategic goals.