Research On The Structure And Changes Of The Personal Loan Business Operation Mode In The Commercial Banks

Because of main characteristics, such as risk diversification, stable income, and can link to marketing other private products, all commercial banks are competing to develop the personal loan business. Distrinct commercial bank takes the special personal loans business operation model, on account of itself different management level. Commercial banks are exploring the suitable operation models to match their business scale in their different business development stages.To describe the transaction cost theory is the main form for the research of the structure and changes of the personal loan business operation mode in the commercial banks. The management cost, contract management, product design are introduced to the research of the personal loans business operation mode in commercial banks.It is found that the personal loan transaction between the borrower and the commercial bank is basically a business relationship, and the choice of personal loans business operation model is in line with the theoretical analysis of transaction cost, which is influenced by the three factors of asset specificity, transaction frequency and uncertainty. The transaction frequency is the main cause of the change of the operation mode of personal loans business, which makes the asset specificity higher and uncertainty lower, so as to reduce the transaction cost. The change of the business operation mode of the personal loan business in the commercial bank affects the change of the contract governance mechanism and the product design mechanism.Through comparative study on the changes of personal loans operation model of Zhengzhou CCB and PDS, the four hypotheses proposed are verified: first, if the transaction frequency of personal loan business is higher, the degree of asset specificity is higher, and then the commercial banks tend to adopt the personal loan business model with a high degree of vertical integration. Second, the higher the transaction frequency of personal loan business in commercial banks, the higher the transaction cost, as a result is that the degree of vertical integration of the business model of the commercial bank’s personal loan business is higher. Third, with the change of the personal loan business model, the form of the contract also evolves to the fine direction, so that the commercial banks can reduce the adverse selection and moral hazard in the credit market through the more complex contractual arrangements. Fourth, the higher the degree of vertical integration of the business model of the commercial bank’s personal loan business, the lower the complexity of the personal loan products.