On The Personal Finance Planning Businesses Of The Chinese Large-scale Commercial Banks

With the progress of the societyand theincrease of residents’income, the concept of personalfinance has been widely accepted. The contradiction between the aging of the population and thegap of the social securityfunds has become more andmore serious. Enough wealth should bekeptaside to cover theliving expenditure andprecautionaryuse forthe elderly. To winthebusinesses inthis field, all the banks try to put forward various personal finance products and hence personalfinance business has been a field with fierce competition. But the abrupt changes in the financialmarkets, including the plummeting of the Chinese stock market and the international financialcrisis, has made more and more people be aware of the importance of risk aversion in personalfinance.Consequently,personalfinanceplanningbusinesshasbeenprovided.Thepersonal financeplanningbusinessreferstoaseriesofbusinessesprovidedbythecommercialbanksfortheirclients,including such specialized financial businesses as financial analysis, financial planning, investmentconsultancyand asset management. In such series ofservices, the core of the personal finance is todesign customized personal financial products, to manage risks and to achieve a certain degree ofincome. Personal finance business is now a new profit source for the commercial banks. Presently,the Chinese commercial banks’profits come mainly from the interest rate spread between depositand loan. With the decrease of the interest spread and the gradual interest rate liberalization, thebanks’ interest income would decrease gradually. To enhance the profitability, the banks willdefinitely try to find new profit sources. This thesis has discussed the background of thedevelopment of financial planning business, and studied the case of Bank ASuzhou Branchto analyze the problems and the reasons of the large commercial banks of our country, andput forward some solutions.