Research On The Regional Development Of China City Commercial Banks

Summary: At the time that China’s state-owned commercial bank reformcompleted, City Commercial Banks (CCBs), as the third step of China’s bankingsystem, has become the target of Chinese banking reform. In recent years, withderegulation, regional operations of CCBs have become the inevitable direction ofreform. This article attempts to analyze city commercial banks’ regional developmentfrom its strategic choice, regional management approach and the development steps.Firstly, we summarize the related research findings from domestic and foreign scholars,and the whole analysis based on comparative advantage theory, the theory of financialintermediation, development pole theory. With a comparative study and researchmethod, we comprehensive analysis of the following questions, such as policy changesof CCBs’ development, the status of its regional business, the strategic choice, regionaloperation mode choice and regional development paths and steps. At last, we putforward relevant policy recommendations.In this paper, we firstly summarized and evaluated the regional development ofCCBs’ policy changes by classified the144city commercial banks. To pursuit ofeconomies of scale, breakthrough single profit model and avoid risks, CCBs choose aregional business. With the combination of multi-level banking system, diversifiedfinancial needs and CCBs’ comparative advantage, we conclude that strategy ofregional operation of CCBs should be placed in national economic coordination ofnon-equilibrium development strategy, and then establish underlying growth pol e,effort to provide financial services for small and medium enterprises (SMEs). On thisbasis, the article further analys is of the bank’s SME lending technologies, and then,made a classification of SMEs, summarizes the regional mode of operation. Finally wepointed out what pathway and steps should the CCBs to follow.This paper draw four conclusions: first, the further development of china’seconomic requires the establishment of primary growth pole. Second, the regionaldevelopment of CCBs’ strategic positioning is still necessary to provide financialservices for SMEs. Third, regional development of CCBs should not span a wide rangeof blind, but to follow after the first province to follow the steps outside the province.The first step is a development from County Municipality within the region, then, tothe province of regional development, and finally to the neighboring province ofregional development. Fourth, the regional operation of CCBs should flexibility to choose one or a combination of a variety of ways, and at the same time, banks have tomake full use of SME lending technology to provide services for SMEs. Finally,according to the analysis of full text three policy proposals were given: firstly, weencourage CCBs to extend to the county economy. Secondly, we encourage CCBsinvolved in joint-stock reform of rural credit cooperatives. Thirdly, we encourageCCBs to take the difference in road build quality banks.