The Role Of The Development Of Local Commercial Banks In The National Economy

With the development of the reform and opening-up, local joint-stock commercial banks gradually play a role in the development of the national economy, because our country has selected the strategy to favor the development of SMEs. In this system, the local joint-stock commercial banks should play an important role, not just as a complementary role subject to the large financial Commercial banks in the financial system. The development of local joint-stock commercial banks will become one of the core content of Chinese future development of the financial system.Chinese local joint-stock commercial banks have been developing in the cracks of the state-owned commercial banks, and have experienced fierce competition in the market. Most of them have strong vitality, and its strong vitality resulted from the shareholding of clear property rights, clear responsibilities, corporate governance structure and the advantages of a flexible mechanism. The shareholding determines that the local commercial banks should be "self-management, self-financing, enduring its own risk". Local commercial banks not only has a good incentive and restraint mechanisms, and has a high market sensitivity and efficiency of financial services. They have prompted the development of local economic development, and have contributed much for the improvement of the small and medium enterprises, they also provide much service to urban and rural residents. In short, the local joint-stock commercial bank in China made great contribution to support a large number of SEMS with low credit, small-scale, and high risk, which are also difficult to obtain financing from the state-owned commercial banks.Although we have witnessed that the local joint-stock commercial banks in China has made considerable progress, but as compared to domestic and foreign large banks, small and medium-sized banks, most of which are local joint-stock commercial bank, are lack of capital, and involved poor management, low staff human capital and other competitive disadvantage in increasingly competitive banking industry. What can we say about their development prospects? As the same time, they are inextricably linked with the local government. Under the strong support of the local government, the local joint-stock commercial banks have made much progress, and their operations and business can continue to expand. The competition from state-owned commercial banks and foreign banks, how should the local commercial banks make strategic choices, and how do the state and local governments regulate the development of the local commercial banks? In this paper, the research object is the local joint-stock commercial bank in China, and the author will discuss their strategic positioning, development prospects, and the promotion of local and national economic development.As the theory of modern commercial banks concerned, they are lack of systematic research on the special features of the local commercial banks and the law of development and strategic positioning, however, they are just concentrating on the big bank mergers restructuring and combination. Therefore, if we can systematic study the role of the local commercial banks in the national economy during the transition period, then the theory of commercial banks will be expanded and they can be used to explain some financial reality in the development country.The theoretical benchmark of this study is to explore the role of the private commercial banks in the national economic system. The emergence and development of the local joint-stock banks is a result of the deepening of Chinese market-oriented economic. As a new form of financial organizations and institutional arrangements, the local joint-stock commercial banks increasingly play a unique role in the function and have a strong motivation for the development. If we can Promote further reform and development of the local joint-stock banks, then we will promote the diversification of the financial body, and eventually the improvement of the local joint-stock commercial banks will contribute the healthy, stable and rapid development of national economy.Currently, deepening the reform of the financial system in China is an important part of building a vibrant commercial banking system as well as a more robust mechanism for micro-finance. Because local joint-stock commercial banks embrace more important position in the national economy, the rapid development of local joint-stock commercial banking system will undoubtedly add vitality to our commercial banking system. The relations between the Local joint-stock commercial banks and the SMEs, urban and rural residents, and the local government are very close, moreover, in the light of building a more robust foundation of micro-finance, the development of local joint-stock commercial banks can also play an important role. Finally, the author hopes to put forward constructive suggestions on decision-making reference for the government and the Bank.