The Study On The Construction Of "Boutique Banks" By Small And Medium-sized Banks

Since1980s, China has established more than10joint-stock commercial banks like Bank of Communications successively and restructured urban credit cooperatives into more than100city commercial banks to meet the needs of financial reform. Compared with the big four state-owned commercial banks, the size of these newly-emerging commercial banks is generally small, so they are collectively colled small and medium-size banks. For nearly20years, people have never stopped pondering the question:what direction different from the Big Four should small and medium-size banks develop in as a product of the reform? For small and medium-size banks have neither the scale advantages of state-owned banks nor mature mechanism of foreign banks, to answer the question above becomes more urgent now.As China’s financial industry gradually is integrating into financial globalization, the competition among banks become increasingly fierce and customers’ demands are improving. How to survive and keep developing ing the fierce competition has become an important issue for all the small and medium-size banks. In order to stand out from a large number of banking institutions, highlight the corporate images, status and advantages, and expand the market share, banks are required to implement a development strategy with their own characteristics, achieving sustainable development. Just like other banks, Nanming branch of Bank of Guizhou Province in Guiyang is in a golden opportunity to accelerate the development. Hence it is necessary to determine the development strategy of constructing the boutique bank and adjusting the development ideas according to the strategy.On this basis, by taking the case of Nanming branch of Bank of Guizhou Province in Guiyang as an example to study its external environment and its own conditions in depth, the author tried to explore the law of development for small and medium-size banks, propose recommendations of strategic management for their development in the new era from the perspective of sustainability and long-term development, provide supplement to existing theoretical system and a reference to the practical problems in the development of small and medium-size banks by theoretical strategy of "boutique banks".In this thesis, the author begins with the exploration of the development background in banking industry, and secondly puts forward the research ideas and research methods in this thesis. Thirdly, the author illustrates the purpose and meaning of building "boutique banks", and then on this basis, in the process of asking questions, analyzing problems and solving problems the author takes the case of Nanming branch of Bank of Guizhou Province in Guiyang as an example and then extends the research to the construction of "boutique banks" for general small and midium-size banks, and eventually draws a conclusion.In the introduction, firstly the author points out that the profound changes have taken place in the environment of city commercial banks in our country. For city commercial banks, the key to grow in the cracks is to face the challenges and seize the opportunities. Secondly, the author describes the necessity and significance, the literature review, research methods and the main content of this study. Thirdly, by studying a single case and reaching a conclusion of universality, the author analyzes the internal and external strategic elements of city commercial banks represented by Bank of Guizhou Province. Fourthly, the author comprehensively measures and evaluates the strategic elements in Bank of Guizhou Province, especially focuses on the analysis of the internal and external strategic elements of Bank of Guizhou Province and other city commercial banks, comprehensive evaluates their strategic elements, and finds out the key strategic elements which play a decisive role in the development. Based on this, fifthly the author evaluates the strategic developing plan of Bank of Guizhou Province and then assesses and ranks the alternatives. At last, the author proposes relevant recommendations for the implementation of the strategy of Bank of Guizhou Province, makes detailed discussion of its market positioning, expansion strategy, alliance strategy, business structure, information strategy, risk control strategy, human capital strategu, innovation strategy and other aspects, and proposes recommendations for the development.In this thesis, the author studies the reasons of strategic decision-making of city commercial banks by an analytical method with a combination of qualitation and quantitation, and uses from-theory-to-practice research method to put forward the strategies and plans for Bank of Guizhou Province on the basis of management science, decision science, economics, finance and other related strategic management theories by drawing on previous studies. In addition, the author innovatively introduces the evaluation of internal and external factors, evaluates strategic elements of Bank of Guizhou Province, and finds out the most important strategic element which influences the operation of Bank of Guizhou Province. Afterwards, the author innovatively uses strategic plans to assess and rank the alternative strategic developing plans of Bank of Guizhou Province, thus finds that what prior strategy and corresponding strategy sequence it should carry out.What needs to be clarified here is that although the author takes the case of Nanming branch of Bank of Guizhou Province in Guiyang as an example, it is not the only objective of study on the construction of "boutique banks". As China’s financial industry gradually is integrating into financial globalization, the competition among banks become increasingly fierce and customers’demands are improving. How to survive and keep developing in the fierce competition has become an important issue for all the small and medium-size banks. Hence facing the harsh financial environment, Nanming branch must give full play to the strong points, create a boutique bank with its own characteristics in order to gain a foothold in the area and stand out from the crowd. Hence more stringent and various strategies are needed.Therefore, in the research of the case of Bank of Guizhou Province, the author does not forget to summarize the universal theory for city commercial banks. Firstly, the author starts from the potential opportunities and internal and external challenges faced by city commercial banks, then analyzes the general problem of them, finds out problems in resource allocation, workforce, business types, management system, operational mechanism and other aspects, and provides the study sequence from the shallower to the deeper to the overall analysis in the thesis according to the structure mentioned above.In summary, based on the analysis of the opportunities and dangers, advantages and disadvantages of small and medium-size banks, the author reaches a conclusion that opportunities and dangers, advantages and disadvantages coexist in the development of small and medium-size banks. Then the author makes corresponding strategic choice and strategic implementation, and in the final conclusion part proposes detailed requirements for the implementation.In this thesis, the author preliminarily discusses the theoretical basis of constructing the "boutique banks", analyses the current situation and the plight of the branch, researches issues like the industry background, strategic planning, system construction comprehensively and systematically, completes the overall thinking of constructing "boutique banks" applying to all small and medium-size banks from point to plane, from the shallower to the deeper, by taking the case of Nanming branch of Bank of Guizhou Province in Guiyang as an example.In addition, the author also combines the relevant theoretical research on the management of domestic and foreign banks with the current situation of banking management in China. The study of this thesis has some instructional functions in the comprehensive implementation of the "boutique bank" strategy as well as some inspiration and reference to the strategic development of other banks. Besides, it can provide valuable advices and guidance to the construction of "boutique banks" for small and medium-size banks.