A Study On The Development Of Urban Commercial Banks In China

With the development of capital markets in China, it is very common for business corporations to invest financial sectors. The combination of industrial and financial capital has attracted great attention of companies and financialinstitutions, which has less transaction costs, lessinformation asymmetry and better allocation of resources.The combination of industry and finance aboard has gradually developed as early as World War II.With the unique geographical location and development background,the city commercial banksare the best choice to use the melting model. City commercial banksare indispensable parts of China’s financial system.They are the backbone of the local financial system.In 2013, the total assets of 145 city commercial Banks in China reached 15.18 trillion yuan, which is 10.03% of the total banking assets.And the non-performing loan ratio is greatly lower than the average level of financial system.This dissertation does a research on the melting model of city commercial banks in China. Firstly, it will analyze the foundation and efficiency of the melting mechanism. Secondly, it will focus onthe combination of commercial capital and financial capitalin foreign countries. At last, it will analyze the problems in the development of city commercial banks investing corporations. Because city commercial banks have been burdened by history debts, its development has been hindered. Under economic globalization, city commercial banks must break through original development models and choose the melting model to seek new development.