Research On The Differential Development Strategies Of Small And Medium Sized Commercial Banks In Our Country

Small and medium sized commercial banks grows rapidly in a recent few year.However, international financial turbulence and crisis, also with domestic inflation bringless prospect and profits, but more managing challenges. In accordance with the WTOcommitments concerning the opening timeline for financial industry in China, foreignbanks are available to establish branches in the mainland, and operate major part of CNYbusiness. At the meantime, domestic state-owned banks gradually finish the shareholdingsystem transformations, which makes the small and medium sized banks face the marketsituation of competing with both domestic and foreign strong challengers. As theperforming of Basel Protocol (Basel Protocol II), more strict regulations have beenbrought to the game. Also, commercial banks have certain pattern of development. Thefactors above bring them to the very bottleneck stage.An obviously point could been seen from data and matters of fact that small ormedium sized commercial banks have to maintain their long term development viaintrinsic advantages, clear market positioning, and differentiated and featuring operation.At present, Banking is highly monopolized by state capital. That is, benefits of bankingsector are limited to a certain extent, and potent support for small and mediumcommercial banks seems to be a must and trend. Those banks have comparativeadvantages, though there is still some obvious disadvantages comparing with state ownedbanks and foreign banks. Meanwhile uneconomical scale and X-inefficiency indicate thatscale operation would not be a suitable way for medium, especially small commercialbanks. Fortunately domestic and abroad markets also brought excellent opportunitieswhen they brought tough challenges, such as vigorousness of domestic small andmedium enterprise, expansion of personal finance requirements and so on. In conclusion,domestic small and medium commercial banks ought to evade their own disadvantagesand threat from the markets, and develop intrinsic advantages for a huge leap from thefuture market. According the research in the coming article, below strategies arenecessary for small and medium commercial banks reference.Differentiated marketpositioning/External organization structure innovation/Featuring enterprise culture establishing/Financial items innovation。...