The Research On Development Of Community Banks In China

It is the first year of community banks to development in2013.Community finance becomes the new battleground of the commercial banks unconsciously. Many domestic commercial banks open community branches, and join in the financial trend with great enthusiasm. Community banks have become a hot topic of financial reform in China. Faced with the rapid advance of the interest rate, and the rapid development of internet finance, a number of commercial banks accelerate the transformation of development. As small enterprises and residents need accesses to get the better financial service, it forces many commercial banks to develop community branches. The establishment of community banks has shown unprecedented enthusiasm. Sustainable growth of Chinese economy needs financial development. The banking system will continue to be the core of our finance for a long period of time in the future. Development of community banks should become an form to adjust and optimize the arrangement in the banking system. The mature of the financial sectors, especially the banking industry, pay more attention to the market segmentation and in-depth. At the same time, with the urbanization and market-oriented reform of interest rates, development of community banks has become an inevitable trend in the future.Development of community banks is in favor of guiding the development of private capital in a suitable way. It improves the efficiency of financial resources, and play the role of market allocation of financial resources better. It helps to make up for the blank of large-scale banking service. It improves and enriches the level and depth of the entire financial system. It is important to form a diverse and orderly market competition pattern. It is good for alleviating the financing problems of SMEs, and it fills in new blood to the real economy. As a result, it rapidly promotes the rapid development of SMEs, and it is the springboard to energize the entire national economy. It helps banks to provide personalized financial service, and to improve the ability to competition. It is a vital restructuring direction for all banks. Therefore, this research takes full consideration of the development of community banks abroad. At the same time, it combines with our current financial situation to propose the idea of the rational development of community banks in China. It will have certain theoretical and practical significance to promote national economy and enhance the competitiveness of Chinese banks.This paper reviews the researches of domestic and foreign scholars in the first time. Comparing to the domestic and foreign scholars on community banks, this paper gives out the definition of community banks connotation. After the bank being clearly defined, this paper elaborates on the comparative advantages of community banks and other financial institutions. Community banks have clear information advantage, and a significant advantage of the geographical advantage. Following this part, it discusses the comparative disadvantage of community banks:single product, lack of innovation, severe shortage of human resources, weak anti-risk ability, as well as imperfect internal control system. Then, the article describes the successful experiences of American community banks. It analyzes from all aspects of the business activities. Then, it briefly introduces he development of community banks in t our country, such as China Minsheng banking and Zhejiang tyrone commercial banks. By comparing the development of domestic and international community banks, it raises a number of ideas of community development with two aspects:external environment and its own building. It should take advantage of the national community banks. In the meantime, we should draw on the successful experience of foreign countries. While avoiding disadvantages, and seeking advantages. The last part of the article is a summary of the views of this article. It also gives some future prospects of the development of community banks.