Research On BH Bank's Development Strategies Under The Situation Of Internet Finance And Interest Rate Marketization

Since various policies were settled in 2011,the Internet finance and interest rate marketization have entered a substantive stage.O n the one hand,the Internet finance enjoyed rapid development like mushrooms after rain and massively squeezed the market share of traditional financial industry.The characteristics of Internet finance itself increased the disintermediation speed of banking,and the market share of traditional banking industry were suppressed in many ways by the Internet finance.Therefore,traditional banking industry started paying attention to developing their own Internet banking products.In the financial market originally controlled by the traditional banking,more and more Internets challenged the market share of traditional banking,resulting into greater business pressure of traditional banking;on the other regard,the interest rate marketizaiton entered the substantive stage.The people's Bank's deregulation of interest rates control and the abolition of the upper and lower floating limit further reduced the profits of traditional financial sector.Although the reforms of interest rate marketization has lased for 20 years,but traditional banking sector faced unprecedented challenges and impacts when the interest rate market policy really settled.In the decade from 2002 to 2012,most of the banks had above 20% increase rate in both size and profit,but after 2012 with the interest rate marketization in the substantive stage,the profit growth rate of most banks fell to above 10%.The interest rate marketization squeezed massively the development speed and profit growth of traditional banking.Based on these two points above,the golden years for the development of traditional financial industry has come to an end,facing new development challenges and opportunities.BH Bank is a commercial bank established relatively late,which does not catch the golden years for bank development,but face impact of the Internet finance and the interest rate marketization.It is a threat and an opportunity for BH Bank.This paper will explore the business development strategies of BH Bank in the face of such opportunities and challenges.First,through analyzing the reasons for emergence of Internet finance and interest rate marketization,the paper carries out analysis on shortcomings of current traditional financial sector,elaborates in detail the impact,challenges and development opportunities of Internet finance and interest rate marketization on BH Bank business from the micro and macro level,combines with the characteristics of business development in BH Bank and finds the disadvantages and development directions for BH Bank business.Second,the paper starts from the feasibility and necessity analysis of Internet finance and interest rate marketization on China's macroeconomic development and clarifies the impact of Internet finance and interest rate marketization on C hina's economy so as to clearly understand the influence of Internet finance and interest rate marketization on future trends of China's economy and thus explore the deve lopment directions of BH Bank's business.Then,by comparing the countermeasures of other traditional financial sector under the situation of Internet finance and interest rate market,the paper carries out researches on BH Bank business development strate gies according to its characteristics.The paper adopts a variety of scientific methods,summarizes some implementation plans about the BH Bank development strategy,discuss the operability and feasibility and finally works out a series of business development strategies in accordance with the characteristics of BH Bank.