The Study On The Development Of Small And Medium-sized Banks

Small and medium-sized banks in China now has become important component of the financial system. However, due to the market environment, institutional policies and its own products and other factors, compared with the five state-owned commercial banks, Small and medium-sized banks are at distinct disadvantage, they must face competitive pressures, Coupled with the powerful offence from the foreign banks, the small and medium-sized banks in China encountered a series of unprecedented problems. through analyzing the existing problems in the development of Inner Mongolia bank, This article aims to identify the various factors restricting the development of Inner Mongolia Bank, then propose appropriate solutions, finally provide some useful suggestions for the healthy development of small and medium banks.At first This article cited the theoretical basis for the existence and development of small and medium-sized banks, Specific theory involved include the theory of financial development, the theory of comparative advantage, the theory of economies of scale, the theory of the allocation of resources and the theory of financial function, These theories think the existence of the small and medium-sized banks are rationable.Then the paper focuses on the definition of small and medium banks, the course of development of small and medium-sized banks, the comparison of our small and medium-sized banks with state-owned commercial banks, the course of the development of the Inner Mongolia bank. As to the definition of small and medium banks, the foreign has two views including the Fed criteria and the Manchester Business School in UK criteria. For our own part, the small and medium-sized banks are commercial banks except the state-owned commercial banks, including national, regional joint-stock commercial banks, city commercial banks and rural credit cooperatives. The course of development of China’s small and medium banks were experiencing a period of free development and leapfrog development period in two stages. Mainly from three aspects of the capital adequacy ratio, yield, non-performing loan ratio of the small and medium-sized banks are compared with state-owned commercial banks in three aspects which are the capital adequacy ratio, the yield ratio and the bad loan ratio. Then the article describes the course of development of the Inner Mongolia bank.The third part of the article details the current constraints to the Bank of Inner Mongolia, including small and medium-sized bank market localization convergence, the imperfect of capital supplement mechanism, the lack of talent, the imperfect of property right mechanism, weak anti-risk ability, lack of external environment.The fourth part introduces the development course of small and medium-sized banks in America, some good practice used by America Small and medium-sized banks in the process of development could be good to the development of small and medium banks in our country. small and medium-sized banks in America experienced free period of development, strict control period and deregulation period, now small and medium banks in the United States are in period of healthy development. America Small and medium banks development course provides our small and medium-sized banks with certain reference, including small and medium banks having a clear market position, Focusing on exchange of message during small and medium-sized banks, a perfect legal system, special deposit insurance system established, financial innovation carried out by small and medium banks.Finally, the article give some advice to the bank of Inner Mongolia, the Bank of Inner Mongolia should adjust market position, taking the difference and characteristic development road; the Bank of Inner Mongolia should improve corporate governance mechanism; the inter-bank equal competition environment should be established; the Bank of Inner Mongolia should carry on the financial innovation, enhance its market competitiveness, and improve the training mechanism of Bank of Inner Mongolia; encourage the Bank of Inner Mongolia to join in the stock market, improve the bank’s capital scale, and enhance the ability to resist risk of Bank of Inner Mongolia; the small and medium-sized bank should cooperated with other banks; design different marketing strategy, implemente the customer manager system; improve the ability of risk prevention.