The Analysis Of Chinese Private Bank And International Private Bank

Private banking aimed to provide comprehensive financial services to fluent clients, to help them manage their wealth. This industry is vigorous and shows great potential. Private banking has more two hundred years of history worldwide, it has developed a comparative mature system includes structure, profitability and operational model. These private banks manage wealth on behalf of clients, they also make huge profit for themselves at the same time. With the economic development of our country, entrepreneur, wealth families developed large amount of wealth step by step. The number of high net value individuals soars up. At the same time, clients have high demand for wealth management. Commercial banks want to take the advantage of private banking activities with high profitably and comparative low capital-taken. Commercial banks set up the first private bank in2007. Although Chinese private banks have developed for six years, we still have disputes over the efficient structure, profitability model and so on; private banking products are lack of creativeness; wealth managers are not quite qualified. All these factors have limited the development of private banking. It is great time for us to conclude and learn from the successful experience from international private banks, thus we can find the right direction and mak progress in this area.Chapter one gives a general background of this article, and introduces academic achievement in and abroad the country.Chapter two introduces the origin of private banking, analysis the market share of large private banks in the world and ranks them according to assets under management in2012, Comparing the performance in profitability, size and efficiency of different countries. By studying the critical figures, we reveal the correlation between them. Then has a overall look at the development of Chinese private banks and Collects the information of Chinese private banks in client and assets under management size which shows the progress we have made in recent years. Chapter three compares the operating environment including fanincial arragement, tax system, law system and foreign exchange control.Chapter four concludes the structure of private banks. There is independent private banks, private banks set up by investment bank and large financial groups, family office. Then concludes structure of Chinese private banks and the differences between them.Chapter five intruduces the service of private banks, make UBS Wealth Management and private bank of China Construction Bank. Then compares the difference between foreign and Chinese private banks.Chapter six introduces profitability model, fee-based and asset-based model, and analysis the advantage and disadvantage between them separately. Then compares Chinese private banks with foreign private banks in profitability model.Chapter seven comes up with some advice for better development fo Chinese private baning, such as to improve the operating and profitability model, put emphasis on assets management overseas, to attract and train employees.