Research On Private Banking Business Development Of Commercial Banks In China

Private banking business is based on wealth management, providinghigh-net-worth customers with top finance services Its prominent feature is anordered financial service suitable for the demands of the customers, with confidentialand private feature. As a high-profit business of commercial banks, private bankinghand a vibrant development in foreign country, and becomes one of the mostimportant part of commercial bank.At the same time the private banking business have got a huge development inChina with China’s commercial bank to implement the business transformationstrategy to deepen financial markets, fierce attacks of foreign banks in thedevelopment of the high quality customers. According to the commitments to theWorld Trade Organization, China has canceled the restrictions on foreign banks onDecember2006and allowed foreign banks to carry out all the business in China. Asthe fields of finance’s opening the foreign banks with abundance experiences havefocused on the market of private banking of China. Facing with the growing wealthmanagement needs as well as the competition from foreign banks, developing privatebanking business of commercial banks has become an inevitable trend in China. It issignificant for the acceleration of banking reform and the enhancement ofcomprehensive competitiveness of commercial banking in China to strengthen theresearch and development of private banking. and the private banking businessbecomes the competitive point of the foreign banks.However, China’s private banking business has just started. As the deficiency ofChina’s relevant laws and regulations and the loss of China’s commercial banks bythe existence of its own problems, China’s banks in private banking business is stillfacing many difficulties and challenges. In this paper, we will use foreign advancedexperiences of private banking, through analyzing the necessity and feasibility of thedevelopment of private banking, as well as the problem of present stage, give someadvices for the development of private bankingThis paper is divided into five chapters on the private banking business ofcommercial banks conducted a preliminary study. The first chapter is an introduction.Introduces the research background and significance of the development of domestic,foreign private banks on the research results and research methods. The secondchapter introduces the theory of the private banking business. The concept of private banking business from the definition of starting, and then analyzes the private bankingclients, services and business segments, and private banking and wealth managementbusiness guests the difference between analysis and clearly defined the concept ofprivate banking business. The third chapter is carried out by domestic private bankingbusiness situation and existing problems. A brief introduction of the foreign privatebanks in China’s development situation, and then, with three domestic commercialbanks (Bank of China, China Merchants Bank and China Construction Bank)Development of the private banking business, analysis of the domestic commercialbanks to develop private banking business of the status quo. Finally, the analysisbased on the current state of development, that domestic commercial banks to developprivate banking business problem to be solved. Chapter from external constraints andmarket demands of both commercial banks in private banking business of thedevelopment environment. The fifth chapter presents conclusions andrecommendations. Based on the foregoing analysis and research, from the macro andthe banks themselves, the Commercial Bank of China put forward countermeasuresprivate banking business.