Research On The Transformation And Development Of China's Small And Medium Commercial Banks

The modern banking industry is currently in times of complexity and uncertainty.On one hand,economic globalization,management diversification,and the wide application of information technology,blur the boundaries among financial institutions,lead to more competition,rise operating costs and reduce the profitability.On the other hand,these all accelerate financial innovation,all the banks become similar in the mode of operation and product structure,it is difficult to maintain their own specialties.In financial system,there exists both big banks with large size asset and capital,and also numerous,distinctive small and middle commercial banks(SMCBs),SMCBs and large banks together form the banking system to meet the necessary of the economic development.Asian important part of national financial institutions,SMCBs are complementary to large banking institutions and are the basis of a healthy banking system.In this thesis,small and medium commercial banks mainly refer to these city commercial banks exceptthe5 large commercial banks,12 national joint-equity commercial banks,and rural cooperative banks.SMCBs become useful supplement to large banks due to their specialties of flexible mechanism,short decision-making chains and fast responding speed,and also they are playing an irreplaceable role to the promotion of economics and financial development.In face of competition homogenization,prudential regulation and interest rate liberalization,the SMCBs need to constantly analyze their positioning and strategy implementation,strengthen macro guidance of strategic management capabilities,while constantly explore the transformation and development path in line with its own characteristics.In this paper,we plan to use bank A as an example,to analyze the status of survival and development of SMCBs,and to discuss the opportunities and challenges faced by SMCBs,and proposing solutions that to transit these "traditional" commercial banks which only focus on deposit and loan growth to the "comprehensive" financial companies that have differentiate characteristics of the business.This paper may have some theoretical contribution in helping SMCBs to transit in relatively steady way,especially in specific implementation methods,targets settings and the system-building programs.The practical value of this paper is that not only helps bank A to improve the management level,profitability,risk prevention,and due to these are common problems for SMCBs,but also could be a reference to the whole industry.