Local Commercial Banks In China Development Research

This paper defines the concept of the local commercial banks in our country creatively, and abstracts common characteristics of the local commercial banks from the bank system in existence, it including small asset scale, circumscribed management area and localized capital structure. The whole research about the development of the local commercial banks is based on the advanced concept and characteristics. Now, local commercial banks in our country include a few company Joint-equity bank, city and rural commercial bank, rural cooperative bank, rural and city credit cooperatives. First, this paper reviews the course of development of local commercial banks in our country, pointing out the problems it encounters. Second, this paper places great emphasis on analyzing the effect it acts in our country's economic life, and then induces the functions about local commercial banks in three aspects, that is, for the demand of all kinds of finance, for the interests of local government and for the healthy financial system. Third, after investigating the local commercial banks in the United States, Japan and Germany, this paper sums up the most characteristics of the local commercial banks in developed country, compares and contrasts it with those in our country, and then comes to the implications to develop local commercial banks in our country. Finally, after comprehensive consideration of local commercial banks in terms of scale, market and operation, this paper puts forward the assumption of our country's local commercial banks which consists of district banks and community banks. What's more, the paper advances concrete way of reforming and rebuilding current local commercial banks, that is, to dissolve bad property, shape reasonable structure of share ownership and of corporation governance. At the same time, the paper points out that the local government should construct the ecosystem environment of finance which is advantageous to the development of local commercial banks. By making a study of local commercial banks in our country, this paper tries to give counsel for constructing our local commercial bank system with strong strength, healthy function, reasonable distribution and thoughtful services.