Research On The Innovation Of Public Business In Grassroots Commercial Banks Under The New Normal

As China's economy entered a transforming period,economic development has turned into a new normality,the financial system's evolution continues,the marketization of interest rate is close to be fully done.Since the full liberalization of loan rates that financial institutions regulated in July 2013,the People's Bank had been reformulating the marketization of deposit interest rate,along with reducing the interest rates for multiple times,resulting in the expanding space of deposit interest rates.As in August 26 2015,the latest round of interest rate cuts,the control of one-year deposit interest rate has been loosened.It can be expected that shortly the deposit price war among commercial banks will start inevitably.In addition with the innovation of financial network,various payment companies,and "PPP"(public-private partnerships)business model,traditional commercial banks can only adjust themselves to adapt to it to stabilize their business development.The innovation that traditional commercial banking requires now is comprehensive.In the past,it was mainly needed in product innovation.With big changes in the environment,only the product innovation itself has not been enough to win the future competition.Banks need to innovate in operation ideas,management mode,business model and corporation culture,etc..Currently there are two main ways used in competition among commercial banks: First,the price that can be used to get loan at a higher cost,and to gain market share and customer resources at a lower income rate.Second,the entry standard of risk,which differs in commercial banks with different risk management ability,the lower the entry of risk,the easier to gain customer resources,with rapidly increase of assets/liabilities rate and high revenue,but risks are also much higher;vice versa.Clearly,it is not rational to bias only on each side of the benefits and risks.In the era of marketization of interest rates,the price is undoubtedly a powerful weapon,but the commercial banks that put up a price war will not win eventually,the innovation is to find the optimal balance between return and risk in the new market environment.Corporate business is the most important source of profit of domestic commercial banks,its development is critical to commercial banks.If commercial banks want to remain profitable,they must actively adapt to the new economic normality and explore paths to develop corporate business.In this essay,combing practical and theoretical points of view,it analyzes the background,current status and existing problems of Everbright Bank's corporate business,researches on which measures to be taken to adapt to the new normality of economy,and is based on years of work experience in the branch bank,using fieldwork and data analysis,etc.,to discuss existing problems in depth and to conclude in solutions with targets in improving the competitiveness of the branch bank.