The Research On The Development Approaches Of The Private Banks Of China

With the development of China's economy and the booming financial markets, private banks has become a financial institution which can be widely develop in the society. Since 2000, no matter in developing countries or developed countries, the proportion of private banks assets is showing a growing trend, in contrast, the proportion of state-owned banks are falling. A few conclusions can be drawn from all the phenomenon, that is the development of private banks certainly will plays an important role and function well in the development of the future banking.Across the history of the development of China's economy and finance, the development of private banks can be seen obviously lags behind the economic privatization, the proportion of private banks in China banking is slight at the present stage, and its development cannot fit to the development of the whole national economy. However, with the development of China's economy, the private economy has raised rapidly with the development of China's economy, especially recently the raising of private banks accompanied with the development of the economy. Numerous experts and scholars both thought that the development of private banking has become an important guarantee for the healthy development of China's financial industry and national economy. Therefore, the development of private economy will promote the reform of the overall financial system. This article will focuses on the analysis of researching on the route of the development of private banks, simultaneously through the problems analysis of actual event to find the corresponding measures, and make the reference for the development of private banks.Our country's financial reform is the process of deepening on the basis of the degree of market economy. With the continuous progress of the reform, the development of private banks is becoming more and more urgent, and gradually being on the plan of overall national development. The main reason is that now the international financial institutions keep entering into the China's market, but China private banks and large commercial banks did not have enough strength to cope with the pressure from outside, consequentially they will be suffered in the competition. Another reason is that the current financial sector competition is intense, under the background of interest rate liberalization, facing spreads narrowed, leading to the rising cost of debt, bank profits margins have suffered. Coupled with the economic downward pressure on the larger, in addition there are too many industries which has much excess capacity and enormous pressure, it has led directly industries mismanagement, and then go against the development of the whole banking business. Secondly, affecting the overall situation of financing difficulties of small and medium-sized enterprises have presented a serious threat to the development of the private banks. The development of “underground finance” make our private banks without a healthy environment for development, so that the development of the private bank is facing pressure from domestic and overseas. Even if now development of the private banks has promoted to a strategic height by many experts, but the present development of private banks is facing difficulties and obstacles, this article from the direction of development path of private banks, collect development materials about Chinese private banks and informal finance in combination with methods of historical analysis and investigation, and then treat the specific conditions of our country and the actual situation as an opportunity, starting from the reality of the characteristics of the banking, the article induces and analyzes Chinese private banks development disadvantage and obstacle, and through specific case studies to explore the development of Taiwan private banks, combined with the experience and Enlightenment of Taiwan in the process of development, explore the development and policy recommendations the path of the private bank in our country, in order to preferably promote the development of private banks in china. In this paper, a comprehensive analysis of these problems will be summarized, and find a way to solve the problem, which mainly from the internal and external two aspects to study. According to differences in management of private banks, which not only is a breakthrough of the development and competition, but also the survival of the road, and then put forward to improve the external environment of private banks and the internal operation mechanism. The external environment is mainly to strengthen the regulatory mechanism of the market access and exit of private banks market, accelerate the development of the deposit insurance system. At the same time, deepen the reform of the financial system, to increase support policy further for private banks. The reason to improve the internal operation mechanism of private banks is to find a breakthrough to accelerate innovation, so that can use the advantages to develop the Internet Financial, and give full play to the inherent advantages to enhance competitiveness, and improve the internal management mechanism to construct a supervision mechanism with many aspects. Although in the short term, the initial development of private banks still does not have great influence on the overall banking system, but after development of a long-term differentiation, private banks can become a useful supplement to the existing banking system, and play complementary roles to traditional banking advantages, finally achieve the goal of common development in competition.