The Feasibility Analysis Of Establishing Taizhou Branch Of The East Sea Bank

In recent years,with the rapid development of interest rate liberalization,the State shall implement structural reform of the supply front and policy of “three removals,one reduction,one supplement”namely,cutting overcapacity,destocking,deleveraging,reducing costs and identifying growth areas.The government constantly request companies to reduce their financing cost,which makes the loan-deposit spreads of the bank rapidly shrink and the banks`operating profits,especially some small banks steadily decline.Meanwhile,the trend of financial disintermediation becomes increasingly noticeable and traditional banking business has gradually been squeezed and marginalized,which have a great impact on municipal commercial bank.Therefore,a reasonable layout and precise positioning are in great need.That means we should not only lay out reasonably but also ensure to make a profit.Besides,how to correctly set up branches for DongHai Bank is of vital importance.This paper combines theory with practice.It has a better understanding of the establishment of domestic and foreign bank branches and makes a detailed investigation,research and analysis about finance and economic environment of its established place--TaiZhou.Besides,it adopts SWOT analysis method,and points out the advantages and disadvantages of the establishment of DongHai bank in TaiZhou,along with the opportunities and threats.In the research,it also clearly points out direction for business strategy,business positioning,risk types,and risk control measures set up by DongHai Bank.This paper focuses on the principles and methods of choosing an address for Taizhou branch of DongHai Bank and the cost of detailed budget of the preparation period.It also evaluates the project investment benefit with the financial ratio index analysis method.It makes a reasonable prediction about the 2X17-2X21 future financial reports and return of Taizhou branch of DongHai bank,After calculating the static payback period of the project is3.55 years,the dynamic payback period is 3.89 years,the physical cash flow of 26 million450 thousand yuan in the five years,the expected Internal rate is 22%.At the same time,It also carries out research on the possible risks and takes measures to control them.Through a comprehensive and detailed analysis,the paper argues that the construction of Taizhou branch of DongHai Bank accord with the national industrial policy,and it also fits in with the overall interests of the shareholders of DongHai Bank.It has very strong radiation ability in the network layout of DongHai Bank throughout the province.Plus,it has a broader space for marketing,high profit and risk control etc,with good prospects,good economic benefits and investment value.Through the study,it can not only provide comprehensive scientific basis for planning to set up Taizhou branch of DongHai Bank,but also provides the basic data for layout of the province,making it bigger and stronger in Taizhou as well as making it develop into a special and competitive local bank.Besides,it has a certain conference and guidance significance to help other banks to set up branches in Taizhou.