A Study On Development Strategy Of The Cross-Border RMB Business Of JS Bank Jilin Branch

The executive meetings of the state council decided on April8,2009to developcross-boarder RMB settlements in Shanghai, Guangzhou, Shenzhen, Zhuhai andDongguan as experimental cities. That marked the formal establishment of theglobalization of RMB, and cross-boarder RMB settlement is initiated officially fromthen on. Explosive growth occurred in cross-boarder RMB settlements, with rapidincrease in transaction volumes in the lapse of the following two years. The volumeof cross-boarder settlements in Year2010is506.30billion Yuan, which is141timesof Year2009.It reached2200billion Yuan in Year2011, which is4.3times of Year2011. Cross-boarder settlements is the first step in the progress of RMB globalization,and is the strategic business related to the whole country and long-term developmentand is the necessary embodiment of expansion in economies of scale andenhancements in actual strength of China. Cross-boarder RMB settlements concernsthe strength of core-competitiveness of commercial banks in the future five to tenyears. Its rapid development brings huge business opportunities, while in themeantime challenges and opportunities coexist. The party, which recognizes itexplicitly, has clear directions and promotes it powerfully from the start, will gain theadvantages. This dissertation, takes the example of Jilin Branch of JS Bank, analyzesstrategies of cross-boarder RMB development of commercial banks in the aspects ofproducts, channels, marketing and risk prevention, and it, combining the regionalfeatures of commercial banks and management modes, analyzes some problemsencountered in the implementations of cross-boarder RMB settlements, and presentssome ideas and strategies in the hope of guiding the practice. Structural arrangements of this study is divided into five parts: the first part of theintroduction, describes the background of China’s cross-border RMB business and theprocess of the development of cross-border RMB business, introduces the importanceof the development of cross-border RMB business, and also the problemsoccurred;the second part is the current situation and problems of the cross-borderRMB business of JS Bank Jilin Branch, analyzes the problems existing in thecurrent business development; the third part analysis the cross-border RMB businessproduct and channel building strategy of JS Bank Jilin Branch, highlights theinnovative products and cross-border RMB settlement of cross-border RMB businesschannel construction, as well as commercial banks overseas strategic layout of thebuilding; the forth part is the cross-border RMB business market positioning andmarketing measures, respectively, from the customer focus and customer type twodimensions to make recommendations on cross-border RMB market segmentationand market positioning, using4P theory marketing design, develop specific proposalson the cross-border RMB business of JS Bank Jilin Branch; the fifth part is the riskprevention of the cross-border RMB business,analysis the credit risk, operational risk,country risk, market risk, policy risk involved in the cross-border RMB business, andprovides the proposed risk prevention measures to ensure the healthy development ofthe business.