Chengdu Bank Secondary Cities Across Regional Development Research

In recent years, the functional localization of city commercial banks that they just serve the local finance has changed a lot slowly. Some city commercial banks which operate well start to make a new round of reconstruction and introduce strategy investors so as to come into the stock market, to improve the corporate governance and take inter-regional businesses. From the second half of 2006, many city commercial banks have been high on renaming their banks. Although these banks reserved local features, it lessened the characteristics of local finance. There is a trend of these banks to be national share-owned commercial banks. Bank of Chengdu (BOCD) is one of them and the inter-regional of BOCD is based on this background.In April 2010, CBRC introduced the regulation on admittance of branches establishment of medium-small banks. This regulation allows medium-small banks establish branches which have no quantitative restriction and at the same time reduce capital requirements for branch operations. Undoubtedly, the break of branches territory restriction will make the development of city commercial banks vigorous and contribute to improve service operations of city commercial banks. Whereas above-mentioned regulation which CBRC put forward, it is an important task for all city commercial banks including BOCD. to explore a new management mode of establishing branches in different places. This article studies on relationships between the head office and branches, the emphasis between business development and management functions, the discrepancy of salaries in different areas, the imbalance between authorization and risk management, the lack of qualified personnel etc, especially studies on the development strategy of BOCD in secondary cities in Sichuan province. And it is hoped that these studies are useful for the inter-regional development of city commercial banks.The study of this article is divided into five parts:Part One:Introduction. It introduces the background and the meaning of this study, and the actual state at home and abroad as well as the main contents and the key point.Part Two:The analyses of the actual development state and the competitive characteristics of city commercial banks. It takes the emphasis on the functional localization of domestic city commercial banks in the financial market and the development of the actual state. In this part, this paper analyzes the internal and external environmental factors which city commercial banks are faced with. It also describe the characteristic of the industry competition and come up with the general competitive strategy.Part Three:The analyses of.the inevitability of the inter-regional development of BOCD. Through studying on the actual state of BOCD and the internal and external environmental factors as well as advantages and disadvantages of the production, the service, the creative ability and salaries, It point out that it is the inevitable choice for BOCD to take the inter-regional development.Part Four:The strategy study on the inter-regional development of BOCD in secondary markets. Through analyzing financial features of secondary market and the general development strategy of BOCD, It comes up with the developmental direction of BOCD in secondary markets. It takes the emphasis on specific difficulties and competitive characteristics which BOCD will be faced with in secondary markets. Then, It puts forward the competitive strategy and management measures which are systematic and niche-targeting.Part Five:Case analysis—the establishment and operation of Ziyang Branch of BOCD. Because the writer is in charge of establishing Ziyang Branch of BOCD, it can analyze the efficiency of above strategy and measures deeply. Based on experiences and solution of problems, it brings up the improved plan.It will use the way of the case analysis and the normative analysis as well as the theory analysis combined with the empirical study in this article. Utilizing the latest data and the writer’s actual management experiences including qualitative analysis, this paper has drawn relevant conclusions and put forward the suggestion of management.The main contribution of this article:On condition that there are lack of study articles about the inter-regional developmental strategy of domestic city commercial banks, this paper makes use of my actual experiences and relevant theories to explore how to make the inter-regional development better and it also come up with some suggestions of management which are pertinent and instructional.