Research On The Transregional Operation Strategy For Bank Of Rizhao

November 2005, Bank of Shanghai was allowed to set up a branch in Ningbo, marking the Chinese city commercial banks entered a new era of cross-regional development officially. In 2009, the CBRC lifted restrictions on the operation area of commercial banks further and domestic city commercial banks have accelerated the pace of cross-regional operation. The implementation of the cross-regional operation strategy expanding the survival and development space greatly, but at the same time, more risks and challenges were encountered. The cross-regional operation strategy needs to be continually reviewed and timely adjusted. Based on the study of both domestic and foreign literature about commercial Banks’ cross-regional operation, compared with the statistical comparison of a large number of business data, this article mainly aims to describe the cross-regional operation status for Bank of Rizhao and analyze the difficulties and challenges encountered in the implementation of its strategy. In addition, puting forward the strategic adjustment and implementation plan by means of SWOT analysis method.Bank of Rizhao implemented cross-regional operation strategy earlier among its peers, including introducing strategic investors, joining the city commercial bank alliance, seting up branches in another state, initiating the establishment of off-site village banks and other forms.Overall, the introduction of strategic investors provides a lot of capital injections and business development support for Bank of Rizhao. Moreover, joining the city commercial bank alliance provides solid assurance of system development and technology services. Affected by the economic situation, cultural differences and other factors, operating conditions of branches vary greatly in different area, presenting fluctuated upward development trend. Village banks esstablished in Shandong province tend to operating well,but village banks esstablished in other provinces fall into operational difficult position mostly.Bank of Rizhao implementing cross-regional operation strategy, owning both advantages and disadvantages on the internal ability,and faces both challenges and opportunities in external environment.Internally, Bank of Rizhao has a small size of organization, less layers of management, highly market sensitivity and flexible policy. At the same time, cross-regional operation increases administrative level and risk management difficulties, while talent, technology and other aspects of the natural disadvantages become restricting factors.From an external perspective, cross-regional operation can provide a more broad space for development and more abundant market resources for Bank of Rizhao. Meanwhile it also avoid systematic risk of opereating in a single region, but may face more prominent threatening factors, including decline of economy,lose of original local advantages, bigger geographical cultural differences, increasing competition among banks and so on.Based on both internal and external environmental factors, this article proposes adjustment programs and implementation suggestions of the cross-regional management layout for Bank of Rizhao. In terms of market development, we should suspend the pace of seting up massive branches, tap the potential of existing network management and select several prospecting cities or counties to set up branches;In terms of resource utilization,deepen the cooperation with Bank of Nanjing and city commercial banks in Shandong province to strive for capital, technology and other comprehensive safeguards; In terms of business development,enrich financial products system,optimize the credit structure and make a characteristic brand;In terms of access to resources, strive for government support and carry out strategic cooperation with local enterprises to achieve synchronous development; In terms of profits, focus on strengthening management of internal control risk to prevent loss of loan eroding profits. New established branches should achieve the goal of to be profitable after opeaning two years and reaching the industry average in five years; In terms of human resources, cultivate hundreds of outstanding grassroot management talents; In terms of staff motivation, form a positive and harmonious atmosphere; In terms of social responsibility, establish a good social image.