China's City Commercial Banks Market Positioning Analysis

Since the first urban commercial bank- Shenzhen commercial bank was established in July, 1995, China has already started up 117 urban commercial banks. But urban commercial banks are being put in a more difficult situation as the competition in China's banking industry accelerates and the foreign banks are entering into China's financial market. In order to enhance their competitiveness and have a long-term development, they have to have a clear idea of their own market orientation. On the basis of analyzing the comparative advantages of American community banks and the feasibility of establishing Chinese Community Banks, this paper holds that urban commercial banks should be oriented to community banks.This paper makes a deep analysis on the current situation of the urban commercial banks, and discusses the challenges and the problems that the urban commercial banks encountered, meanwhile we advance the relevant means to resolve. It does the research as follows:First of all, it makes a profile of the urban commercial banks.Then it takes the American first bank as an example to express the experience that the urban commercial banks can learn from the American community banks by discussing the character of the American community banks.Finally, it makes a comparison between the urban commercial banks and the American community banks, and discusses whether it's feasible to orientate the urban commercial banks to be community banks. On this basic, it suggests making the urban commercial banks to be community banks, and presents the relative development strategies.