A Study On The Development Model Of Private Banks In China

With the rapid development of our economy strength and the accumulation of personal wealth,the assets allocation is gradually changing.Clients put forward higher requirements for private banking services.Private banking services in China first appeared in 2007.After nearly ten years,compared to the initial size and quality,they have a very large increasing.But viewing the situation from a whole,foreign private banks occupy the majority of the high net worth individuals' wealth management in our country.Facing with the rich market and rapid growth,the development of Chinese private banks began to highlight the problems.The top layer design of private banks,development environment and its own all need to be improved.In order to promote the development of private banks in China,we need to fundamentally solve the current problems encountered.Through the study of foreign private banks,the organization mode of private banks is fundamentally different from that of private banks in China.Independent subsidiary patterns occupy a large proportion of the foreign private banks,while private banks in China are business division model and large retail model and do not form an independent legal personality.That hindered the development of private banks.Products and services that private banks provide can not meet the demand of high net worth individuals' wealth management.They are at a disadvantage to seize the market with foreign private banks.Through the analysis of the national economy,commercial banks and private banks'customer level,this paper introduces the domestic private banks' current situation and the development of foreign private banks.It is necessary and feasible to establish an independent subsidiary for private banks.In this paper,we select the S bank as the research object.The general situation of the private banking business of S bank and the bottleneck of the current situation are studied in detail.It's illustrated by the cases.Through analysis the internal and external environment the S bank faces,finally the framework of private banks' independent subsidiary are put forward.Relying on the S bank and targeting the high net worth clients and family enterprise customers,the private banks operate its business.It analysises from the perspective of supervision,risk controling,independent system and other aspects and solve the bottleneck problems on the development of the private banking business of S bank.It is of great significance from the perspective and long-term development.