China's City Commercial Banks To Development Problems

The Urban Commercial Banks are widely distributed in the large and medium cities, and become a component of the financial system of our country, but their existing problem are very complicated and very serious, have already become a difficult point of the reform in banking system of our country. In recent years, the existence development problems of the Urban Commercial Banks have caused the extensive concerns of the various circles of society.1, Development and characteristic of the Urban Commercial BankThe Urban Commercial Bank is the characteristic of commercial bank financial institution in our country, from scale, it belongs to small bank. But its business scope was confined in the city where one stays, which makes it different from small bank in foreign countries.The Urban Commercial Banks in our country were established by mandatory changes of the administrative strength of local government. The original intention was not for meeting the demand of multi-level and pluralism financial in our country, but for dissolving the risk of the former Urban Credit Cooperatives. So the Urban Commercial Banks inherited a large amount of non-performing assets from the former Urban Credit Cooperatives and made them burden just at the beginning of establishing. Because of the same establishment backgrounds and facing the similar management environment, the Urban Commercial Banks are similar in choosing service object and determining business scope, and develop gradually into an Urban Commercial Bank group which has the common characteristics.2, Problems and challenges faced by the Urban Commercial Banks during the developmentSmaller business scale, disrational structure of the Urban Commercial Bank's stock ownership and all sorts of policy limitations considered by supervision department to against risk, which make most Urban Commercial Banks facing low social prestige, single-business variety, weak profit ability problems and so on, All these make them in inferior position among the market competition, gathering newrisks on the basis of not dissolving the original non-performing assets, thus falling into the very heavy predicament.After our country acceding to the WTO, a large number of foreign capitals banks pour in. The pluralistic situation appears in the financial market subject in our country. The adjustment of the strategic overall arrangement of State Owned Commercial Banks, make their manage focus shifted to large cities, and further aggravate the competition of urban financial market. The quicken of interest rate marketization, the implementation of difference deposited reserve rate system by Central Bank, and the classification supervision to the Urban Commercial Banks by supervision department, the comprehensive function of these external factors make Urban Commercial Banks, which have fallen into a very heavy awkward predicament.3, Countermeasures and suggestions of promoting Urban Commercial Bank healthy developmentUnder so severe situation, if you want to really solve the existence and development problems that the Urban Commercial Banks facing, helping them out of plight, promoting them healthy development, which not only need their own efforts, such as improving stock right structure, strengthening internal management mechanism building, perfecting the risk control system, insisting business products innovation, exploiting market constantly, developing jointly through the business cooperation and annex recombination, etc; but also need close cooperation of local government and supervision department, less intervention, more support, making great efforts to build a fair and suitable external environment for the Urban Commercial Banks by setting up deposit insurance institution, establishing the capital clear system between the Urban Commercial Banks, founding the Urban Commercial Banks' stock right trade market, etc, to further remedy the deficiency in the business management of the Urban Commercial Banks from institution, turn back their inferior situation in market competition, and make the Urban Commercial Banks developing healthy.