The Local Commercial Bank Development Research Of Tibet

The Tibet Autonomous Region (Tibet),located in the southwest border of China, has been watched fast developing recently. However the financial industry still far behind the average level of whole Country which greatly hampered the economic and social development. On May22,2012, the Bank of Tibet officially launched, which was the first local bank in Tibet. In order to speed up the pace of the development of the financial industry, more local commercial banks are needed.Finance, the core of the whole economy, is one of effective tools to locate resources. The economy will be greatly hampered by low level of finance.For a long time, the development of Tibet mainly was stimulated by fiscal expenditure. What’s more,Four state-owned commercial banks which strictly managed by its headquarter can not met the real credit needs in Tibet. Thus, the financial needs are not met, which greatly limited the development of Tibet’s economy. The theory of invisible hand informed the important of the market effective allocating resource to promote rapid economy. So more competition are needed for Tibet finance industry.Local commercial banks play a great role in China’s financial market. They mainly contain city commercial bank(the main part), rural commercial Banks, rural credit cooperatives and rural cooperative Banks, which are organized in the same pattern with large commercial Banks. In recent years, they are growing fast with significantly rising asset scale, dealing with thefinance difficulty of local small and medium-sized enterprises.They has played an important role in the finance industry of urban and rural area,even though still has some problems such as low management level and lack of elite compared to the other big banks. This article first simply expounds the concept and characteristics of the local commercial bank and current situation. To sum up, local commercial banks in our country are mainly small scale, equity structure diversification and management locally.Main point of the article is analyzing the local commercial bank in Tibet. Financial system has been developed in Tibet recently, but some problems like insufficient internal impetus and lack of service function are still exiting. What’s more,financial aversion are primarily exited in Tibet because of the special religion and culture in Tibet. Besides the introduction of bank of Tibet,more attention are paid on Tibet local commercial bank.The necessity and feasibility of Tibet local commercial bank are discussed using qualitative and quantitative method in this article based on the theory of financial repression and financial deepening.Finally, according to Tibetan economic status and current situation of local commercial bank,this article also gave some feasible suggestion on the development strategy of Tibet local commercial bank. Main strategies are market positioning differentiation and development strategy of differentiation.This article argues that local commercial banks play big roles in the development of social and financial area of rural area instead of big Four. It is not only necessary but also feasible to start a local commercial bank in Tibet. But more.attention should be paid to those special customs and religions in Tibet. Thus the scale of bank and speed of development should be less important to stimulate the financial industry striving.