SCP Paradigm Analysis On Personal Financial Management Business Market Of Commercial Banks In China

Since the1970s,personal financial management business gained rapidlydevelopment under the financial industry which innovation constantly. In westerndeveloped countries,personal financial management business has grown moremature,personal financial management business revenue accounted for thirty percentof total revenue in foreign banks.Personal financial management business serves as animportant constituent of commercial bank’s intermediary business,With businesscoversa wide range,steady income, high safety factor, quantityand other advantages.Inrecent years, In recent years, the personal financial management business hasdeveloped rapidly in China’s commercial banks. In the year of2013, the issue size ofour country’s commercial banks’ personal financial products is nearly40trillion.Obviously, it has become a new means of major banks to compete for market shareand also a new growth point for creating profits. However, in this phase, our country’scommercial bank’s personal financial management business is at its infant stage.Product homogeneity serious, employees may not be professional and other issuesstill exist.How to make our country’s commercial bank’s personal financialmanagement business develop in a rapid and healthy way has become the essentialproblem which we shall face and tackle.Since the1930s,Harvard Schoolhas gonethrough three stages of development and improvement,putting forward the completeSCP analytical framework and which provides a guideline for the analysis of personalfinancial markets.This paper based on SCP analytical framework,make an empirical research onmarket structure,conduct and performance of personal financial management businessin Commercial Banks of China.By analysis market shares,market concentrationrate,market barriers for China’s commercial banks personal financial managementbusiness market structure,make a game playing analysis of the price behaviorsbetween banks’ and customers’ and between banks and analysis of non-pricebehavior,And make an empirical analysis for China’s commercial banks personalfinancial management business market performance by learn from the modelproposed by berger.shows that there is an obvious positive correlation betweenmarket shares and the bank’s operating efficiency and market performance,and alsomake a comparison on personal financial management business between China’s commercial banks and the foreign ones.shows that China’s commercial banks personalfinancial management business market structure is irrational,Financial services andpersonal finance product design has a large gap with foreign banks.Due to the Internetfinancial challenges such as yuebao,the market has not yet fully liberalized,Stillsubject to financial regulations,financial regulationand marketmechanismsare stillinthe initial stage ofthe constraints.Cause of personal financial managemant businessmarket performance is not high.Therefore, to improve China’s commercial banksperformance of personal financial management business market,the key is to optimizethe market structure,regulate market behavior, to focus on optimizing the allocation ofresources, improving market shares and operating efficiency.