Guiyang Bank's Development Transformation Research

Since being transformed from an urban credit cooperative or urban cooperative bank more than ten years ago, municipal commercial bank has made positive explorations of developmental transformation, including beneficial explorations on disposal of non-performed assets,optimization of stock right structure, propulsion of merger and reorganization, and management of listing, achieving some effects, such as overall scale increase, anti-risk capacity improvement, and significant profitability enhancement, becoming the third echelon in China’s bank finance system.Compared with the effects achieved at the initial phase of transformation, Bank of Guiyang has raised its management scale, risk control and profitability to a new level by perfecting its governance structure, strengthening its incentive and restraint mechanism, and innovating its business development. But the excessively rapid growth of Bank of Guiyang has caused lots of hidden problems as well. This paper compared Bank of Guiyang with other listed commercial banks by factor analysis method, identifying problems faced by Bank of Guiyang, such as unclear market positioning, unitary profit pattern and high potential risks, and this is also an internal motivation for the further developmental transformation of Bank of Guiyang. On the other hand,as China’s economy becomes a “new normal”, the preliminary completion of interest rate liberalization, the strong impact of Internet finance and the quick rise of private-owned banks have produced great impacts and effects on the future development of Bank of Guiyang, and this is also an external motivation for the developmental transformation of Bank of Guiyang.On the basis of combining comparative advantage theory, relationship lending theory and stakeholder theory, and using small and medium-sized banks’ international experience in developmental transformation for reference, this paper pointed out that for developmental transformation, Bank of Guiyang should first clearly regard the local small and medium-sized enterprises as serving objects by taking a distinctive development path; second, Bank of Guiyang should energetically explore a market segmentation-based professional management pattern and strive to give “each branch a unique characteristic and brand”. The branches can make a choice from community banking service development pattern, wealth management service development pattern, credit service pattern, industrial cluster service pattern, Internet banking servicedevelopment pattern and mobile banking service pattern as the major development realm, and further develop and sub-classify products through big data to really provide “custom services” for clients; finally, Bank of Guiyang needs to conduct effective risk management as an escort for its transitional development. On the one hand, it needs to set up an overall risk management system;on the other hand, it should also implement corresponding risk management strategies according to the features of the credit risks, operational risks and market risks faced by it.