The Research For The Business Development Of CMB In The Current Macroeconomic Environment

In 2008, inflation has indulged world wide under the depreciation of US dollar and the assumption of future enormous commodities demand. But the deeper and deeper US subprime mortgage crisis pulls the world into financial tsunami with global economic integration carrying on and international financial market conducting. Domestic economic unbalance obstructs China economy from developing stably. So China government is anxious to take a range of"forceful"measures for purpose of keeping economy growing continually.China Merchants Bank (CMB) is an excellent listed company, with well developing business. But its business development is restricted by current macro economy. Main impacts are the credit risk increased due to poor repayment abilities, the profit decreased by interest margin reduced, the credit banking scale dropped down due to the economic depression, and the uncertainty of the bank operation enlarged by the exchange risk increased. In order to maintain sustainable growth, CMB should release part of dependence on credit business by transforming business model, encouraging retail to compensating income lost, improving loan structure by carefully client selected, utilizing financial instruments against exchange risk.Furthermore, the current macro economy also provides opportunities for the business development of CMB. It should grasp these opportunities and explore three most promising business, they are credit card, retail non-interest banking, and overseas business, along with respective development strategies demonstrated.