The Development Strategy Of Bank Of Luoyang Under The Opening Condition

In recent years, small and medium-scaled commercial banks have been expanding in an amazing speed, and taking actions frequently in product innovation, transregional management and seeking financing by listing on the stock market with the continuously increasing scale of assets. As to small and medium-scaled banks in China, however, the increasingly opened financial environment has also brought severe challenges. Will their survival sustain the fierce competition in the open financial market? If they do, in which way will they maintain the survival? Hence, questions existing in the development strategies adopted by Bank of Luoyang under an open environment are studied, and the direction of further development is proposed. Thus, putting forward some reasonable suggestions for the development of small and medium-scaled banks in China seems to be of great theoretical and practical significance.The status of the research on the development strategies adopted by small and medium-scaled enterprises and local commercial banks in China under the open environment is discussed and analyzed. The Bank of Luoyang is taken as a practical example in this paper. On this basis, questions existing in the development of the Bank of Luoyang under an open market are deeply investigated and analyzed. Furthermore, the development patterns of small and medium-scaled banks which have yielded relatively rapid development at home and abroad are compared, so that how to better realize the development of the Bank of Luoyang can be studied. Thus, how to facilitate the long-term development strategies of small and medium-scale enterprises and local commercial banks in China is proposed, so as to further drive the favorable development of these banks and even China’s economy.Several main questions are found through the analysis of the Bank of Luoyang, such as the extremely narrow business scope, the weak capability in financial innovation, the deficient structure of corporate governance, the inaccurate market positioning and the lack of effective risk preventing and resolving mechanism, etc. Also, in light of these questions, solutions are put forward respectively, which formulates a strategic planning for the development of the Bank of Luoyang under an open environment. Through the analysis of the Bank of Luoyang, this paper is of certain significance as a reference to other small and medium-scaled banks, especially commercial banks in small and medium-scaled cities in China.