Research On The Development Strategy Of Luoyang Bank Under The “new Normal”

Over the past ten years,China's rapid economic growth has supported the rapid development of China's banking industry.As China's economy steps into the “New Normal”,the external environment has changed a lot and the overall development of the banking industry is facing a huge challenge.The Bank of Luoyang not only faces the "New Normal" downturn pressure and risk on the economy like other large banks,but also faces its own incomplete management system and other realistic pressure.In the present case,the development of the Bank of Luoyang is facing more challenges.An appropriate development strategy is very important for Banks.Before the“New Normal”,development of Bank of Luoyang mainly relies on: network and business regions expansion to bring more customers,to enjoy the policy dividend of spreads,expansion of the scale of assets to bring profit.China's marketization of interest rate is moving toward step by step,policy spreads is becoming gradually narrow.Small and medium-sized banks "scale efficiency" business philosophy has been unfit with the economic environment.The scale effect has been unable to ensure that the natural growth of profit.Under the “New Normal”,development of Bank of Luoyang need a clear and appropriate development strategy and competitive strategy.Similar urban commercial banks in Henan have taken market reform,listing,introduction of strategicinvestors to seek development.By contrast,the Bank of Luoyang is at middle level among city commercial banks in Henan.However,if strategic adjustment is not performed,the bank may face the risk of marginalization,encounter difficult situation.Through the SWOT analysis of the Bank of Luoyang,this paper gets that the Bank of Luoyang has advantages of geological convenience,good risk control and asset status,characteristicsmall and micro businesses credit business and improved web and region distribution in Henan Province,faces the hardship of the mechanism,talent,product,technology,management and other weakness.But the current development is full of a lot of opportunities: China's long-term economic upturn,industrial upgrading and consumption upgrading,supply side reforms to bring a broad market space for the bank.Also non-performing asset securitization provides a new direction of solutions for non-performing problems.This paperanalyzes the performance and the essence of the economic “New Normal”,briefly introduces the two characteristics of China's banking industry under the “New Normal”: asset growth,net profit growth rate sharply decreases,non-performing loans rate increases.With the current financial depth reform,industry evolution continuously accelerating,the transition pressure is becoming increasingly urgent.Internet technology and financial industry mutually penetrates and integrates,financial industry disintermediation happens and competition pattern of the banking industry is facing systematic adjustment.Combined with the actual situation of the Bank of Luoyang and the theoretical analysis,the market centralization strategy and differentiation strategy is a better choice for the Bank of Luoyang.This paper puts forward that Bank of Luoyang should abandon the original mode that relies on the expansion as soon as possible and accelerate system reform,identify the market position,change the development mode,adjust business structure,establish a correct concept of risk and attract professional talents and other specific strategies and advice.