A Case Study On Community Banking Transition Strategy Of Commercial Banks In China

The concept of community bank has been come into being for hundreds of years in the United States. It develops rapidly in western developed countries and shows its great competitive advantage in financial crisis. In America, community bank provides a comprehensive range of financial service for the natives as well as small and medium micro enterprises in order to meet their financial needs, which promotes local economy and community bank development. However, comparing to America, community bank is a new thing in our country and its development is not perfect. Yet, with its preliminary showing, the support effect of the community bank to the local economy and bank business expansion profit margin has aroused people’s concern. In our country, with the rapid development of economy, the impact and status of small and micro business has been strengthened in national economy. Moreover, it has important function on the aspects of increasing income and expanding employment as well as market economy etc.. However, due to lack of collateral and information asymmetry and other reasons, the small and micro enterprises always face financing problems, which restricts the development of the national economy to some extent. On one hand, with increasing incomes, residents’ financial needs have increased, as banks are more inclined to provide financial services to middle and high-end customers, it leads to the needs of ordinary people is difficult to be met. The lack of normal channels also makes private funds, usury and other crimes, which seriously harms social stability. No matter it is to accelerate the rate of market-oriented reforms, or to allow building private banks, which will intensify competition among commercial banks, thereby changing the competition pattern of China’s commercial banks. As a result of that, some banks especially small and medium commercial banks will force to be eliminated. Therefore, facing the challenge, how small and medium banks can win in the competition will be a new subject for its own development and theoretical research. As an effective way to solve the above problems, community bank has been a hot topic in the country in recent years. On the one hand, the discussion by the theorists has been increased gradually. On the other hand, commercial banks continue to try to set up community banks and one of the most typical is Minsheng Bank. Firstly, through the analysis of the actual situation, this paper has a definition on community bank and analyzes the important significance to develop community bank. Taking Minsheng Bank for example, on the basis of the theoretical research towards community bank, this paper has a SWOT analyze to it. This includes community banks restructuring their own advantages and disadvantages as well as the opportunities and challenges of their external conditions. Through the research, this paper gives rational development suggestions to Minsheng Bank restructuring community bank. It includes the optimization model, with the main service target is small and medium and micro enterprises and community residents; optimization network function, according to the characteristics of the targeted communities adjust; consolidation for Minsheng Bank community bank brand building; following the trend of Internet banking and improving market competition etc.. Through the analysis of transformation strategy about Minsheng Bank restructuring community bank, this paper puts forward actual methods. Meanwhile, through analyzing the development of Minsheng Bank community bank, it proves that community bank strategy is an important method to cope with fierce competition for middle and small banks. It has certain significance for theoretical research of community banks in the future.