The Research On The Developing Models Of Private Banks In Our Country

In recent years, the development of private banks has been one of the most striking topics of d China’s financial reform. Beginning in 2014, China has approved a pilot of 5 privately owned bank. It has further set off a wave of developing private banks. However, how to develop private banks in China is still at the exploratory stage.This paper first explain the necessity of the existence and development of private bank and then analysis its advantage and disadvantage. Secondly, from the angle of Chinese basis in reality of developing private banks, the private banks to promote balanced development of Economics and finance, to ease the financing difficulty of the medium and small enterprises, I provide a practical basis for the development of private banks. Thirdly, this paper analyzes the development model of private banks in Taiwan, and summarized their experiences, lessons learned during the development and its enlightenment on development of private banks in mainland China, providing a certain amount of practice for the development path of Chinese private banks. Fourthly, I give the principle of choosing the developing model of private banks and compare the incremental model and the storage model. Through the introducing of the area economic development choices concept, I give the best developing models of China. Finally, I discuss the specific embodiments of the two different development modes in detail.Based on the detailed study of the development models of private banks, I came to the following conclusion: firstly, the private banks can effectively broke the monopoly of the State-owned banks, promoting the reform of State-owned banks and improving the competitiveness of the banking system. Secondly, private banks can ease the financing difficulty of small and medium enterprises, so as to further promote China’s economic growth. Thirdly, proceeding from the reality in our country, we know that, the development of private banks in China is feasible. Finally, incremental model and the storage model effectively combines to form a model of discretion, which is in economically developed areas to choose the incremental reform model, underdeveloped areas to choose the stock reform mode. Finally, in the implementation process in incremental mode, we should achieve a rational ownership structure and a differential market positioning. In the implementation process of memory mode, we should combine structural transformation of property rights, corporate governance reform and the establishment of market-driven incentive and constraint mechanism together guarantying the thoroughness of the reform.