The Research Of Human Capital Investment Of City Commercial Banks

Commercial bank, as an intermediary of financing, it uses currency and its derivatives as the business object, and uses professional services to achieve the operation of financial assets. Following the increase in market competition, and the financial crisis’ potential threats, human capital is now playing more and more role in commercial banks. Accordingly, the human capital investment of commercial bank has become the critical part in its competitiveness.The human capital investment of city commercial banks can be divided into two types:universal and firm-special. In which, the universal human capital investment denotes the public financial investment of one country in education, vocational training, medication and other related areas, which is critical in people’s physical quality, skills and knowledge; the firm-specific human capital investment refers to the company’s dedicated investments, which is used to form its employees’working skills, professional knowledge, experience and their occupational health. Here, the specificity means that it relies on one special company or job position, which is hardly to be directly moved to another company or job position. Therefor, the firm-special human capital is difficult to be replaced or replicated, and thus is enormously valuable.To my knowledge, the current thesis is the first attempt in discussing the strategy of human capital investment in city commercial banks. It provides complete strategies for human capital investment, which are critical and helpful for commercial banks to save their costs in operating, increase their diversify of choices in the external market, and maximize their benefit. Based on the empirical researches and case studies, we suggest that city commercial banks need to separate the general and firm-specific human capital investments; carry out incentive measures; build internal staff promotion approach; promote the transfer from investment to economic benefits; and take a prudent strategies to prevent the withdraw of employees and managers. Meanwhile, commercial banks should also strengthen its specific human capital investment; and enhances the role of common employees and senior managers in the board of directors or supervisory board.This thesis contents seven chapters. Chapter I introduces the research background, the current research, research methods and the innovations. The second chapter reviews the related theories, including human capital investment, corporate governance, asset portfolio, production function and total factor productivity. The third chapter introduces the human capital investment in western firms. The fourth chapter analyzes the universal of human capital investment. Chapter V focuses on the firm-specific human capital investment. Chapter VI studies the overall benefit of the city commercial banks’ human capital investment. Chapter VII summarizes the results and provides suggestions to optimize human capital investment.