An Analysis Of Organizational Pattern And Developing Strategies Of Private Banking Business In China’s Commercial Banks

With the fast economic growth in China, Chinese private wealth is increasing at the same speed, which results in remarkable demand for wealth management for the millionaire group. Private banking shows great development potential, because it is a kind of total professional finance service provided to the rich by commercial banks. In March 2007, the first Chinese private banking department was opened by Bank of China. Since then, more and more Chinese commercial banks have been preparing to open their own private banking departments.However, private banking is still a new business field for Chinese banks and they will face a lot of problems as well as opportunities. From the point of bank itself, absence for scientific banking administration system, lacking of competitive products, short of specialized human resource management and the lowering informatization, are all the factors that limit the private banking development. At the meantime, lacking of protection for private assets, limitation to business due to divided operation, strict foreign exchange regulations, imperfect credit evaluation system and lacking of integrity system and so on should responsible for external environmental restriction to private banking development. Therefore, we should improve and consummate the organization pattern, products design, human resources training plans in order to develop private banking business in domestic commercial banks.This paper is divided into 5 chapters. The first chapter is an introduction, which is introducing the research background, the present study situation and the already studied contents. The second chapter is the summary of private bank operation. Firstly, it introduces the meaning of private banking business and its characteristics comparing with personal financing business. Secondly, it introduces the origin and development of private bank operation in foreign commercial banks. Finally, it analyses the present status concerning the domestic banks develop private banking business. Chapter three suggests the existing problems in domestic banks, which occurred during private banking business expansion. It analyses all the problems of commercial banks from both inside and outside point, and figures out the problems that need to be solved when the domestic commercial banks expand their private banking business. It also points out that the selecting for organization patterns and taking opportunities via developing should be attached great importance.Chapter four analyses and studies the organization patterns concerning commercial banks expanding private banking business. Firstly, it illuminates the advantages and disadvantages among different organization patterns. And it also tells the experience of China CITIC Bank and China Minsheng Bank when they explored the private banking expansion. And then based on the traits of private banking business, it makes a conclusion that Chinese commercial banks should take matrix organization pattern for a better development of private banking operation.Chapter five gives recommendations to Chinese commercial banks develop when their expanding private banking business in the Post-crisis era, that is to say they should turn crisis into opportunities.