| Commercial bank, as a type of financial institutions, plays an important role in modern society. But in recent decades, with the development of the info technology and financial innovation as well as the deregulation of the industry, commercial banks are facing the challenges from money market, non-bank financial institutions and non-financial institutions. Thus, commercial banks cannot solve the problems with them just through reforms on the basis of the present organization structure. They must develop new strategies to survive in the future finance industry.Robert Merton and Zvi Bodie, well-known scholars on finance, famous professors of MIT Sloan, put forward in the early 1990s the idea of functional preserve and the theory of reforming the financial system on the basis of functional preserve. In a sense, as a new paradigm functional preserve goes even beyond the usual institutional paradigm which in the research process is always based on the hypothesis that the form of the present financial institution is unchanged. But in fact, financial function is more stable than financial institute; and with passing of time and variations of regions, the changes for financial institute would be smaller than that of the financial institute. Functional preserve is more suitable for the research of trend of the economic system than institutional paradigm.If it is based on institutional paradigm, the government who also lists the business that financial institutes can operate and limits the competitions from other financial institute or from markets should not regulate the functions that financial institutes possess. Markets and the core competitive capacity of the company should determine the functions.Financial institutes may possess one or more functions and maybe it is not necessary for the same kind of financial institute to take same function. A challenge that waits for the financial institutes in their way to drawing a future strategic plan is how to match financial institutes and financial function reasonable thus to improve efficiency.To commercial banks, their business may involve several financial functions. Now the finance industry is experiencing unseen changes with more competitors including financial institute such as MMMF, and financial corporate or non-financial institute such as network technology companies and supermarkets. Thus commercial banks will face challenges from different fields and according to Darwin's theory finally external competitors will take the place of some functions on which commercial banks don't have strong competitive capacity, which results that a certain commercial bank may keep only a few function on which they have strong competitive capacity in operation and depend on that for future development. That would be the trend in the future for the banking industry or even for the whole finance industry.In this article the trend will be summarized as the two following aspects: specialization and combination of financial business. According to this trend, the core business of banking industry of even the whole finance industry will be intergraded into four kinds: retailing banking business, wholesaling banking business, private banking business and external-supplier business which will provide service such as accounting or consulting. Of course, besides that some companies specialized in management of risks in certain line will also have their opportunities.Combing the specific situation of banking industry in China with the future trend for banking industry around the word, in this article the author provides several strategies for commercial banks in China. Assign business on which banks do not have strong competitive capacity to external suppliers; strength risk management functions with gradual expending to investment banking industry; expend the channels of retailing banking industry. Finally, we can believe that if commercial banks in China can work out plans for future development according to their strength and enhance bearing a clear goal in minds, they can survive the harsh comp... |
PDF Full Text Request