Market Analysis Of The Personal Financial Products In China’s Commercial Bank

With the sustainable development of our economy, the GDP has experienced a rise and the overall national income has been much improved. China stepping into the21th century after rapid development, the disposable income of the rural citizen has a steady growth, which makes the need of the arrangement for the property increasingly stronger and provides a good foundation for the development of the market for the personal financial products in the commercial bank. Meanwhile, with the sustainable development of the domestic finance market, and the deepening of the financial reform, financial institutions have emerged rapidly such as insurance securities, funds, and the entrust, etc. financial disintermediation is increasingly obvious in banks. Confronting with the fierce intra-industry competition and the source of the traditional profits for banks has been squeezed, it is urgent for the domestic commercial bank to find a new profits growth points. Under this situation, the commercial bank has gradually stepped into the personal financial product market arena and personal financial services are deemed to key development areas. In this way, the banks can both meet Residents’ financial needs for the financial arrangement by providing high quality services and enlarge the source the profits and deal with the fierce market competition.To review the development of the financial markets, the sprout of the personal financial product market emerged in the1990s. Up to now, it is at the key stage of development that there is still much room for it to be improved. However, Due to a late start, there is still a broad gap between the domestic markets and the abroad. Domestic commercial banks should take lessons from developed markets, adapt their experience to our current situation, so as to improve the products, to meet the citizens’ financial needs and to strengthen the competitiveness of our own market, in order to accelerate the development of the personal financial product market in our country.This paper about the personal financial product market is divided into mainly the following six parts. The first part is the introduction to the background, significance, both the domestic and foreign related paper are reviewed. The second part is the basic related theory of the formation and development of the personal financial product market of the commercial bank, including market supply and demand theories, life-cycle theory, asset portfolio theory and the financial innovation theory. The third part is started with the process, formation and the reasons of the development to analyze the development situation of the financial product market in the commercial bank. By the method of Econometric methods the forth part empirically analyses the factors of the market development of the personal financial product in commercial banks. Taking the USA and Japan as the representatives, the fifth part analyzes the development situation in the developed markets so as to learn from them. The sixth part offers suggestions for that market.