Research On Financial Strategy Of Sustainable Growth Of Commercial Banks

Sustainable development of enterprises is an effective way for enterprises to enhance their competitiveness and survive.It is an important content and challenge of enterprise financial strategy management to coordinate the relationship between enterprise development and financial resources.Nowadays,as special enterprises operating currency,commercial banks have suffered a sharp decline in business development after years of rapid growth.What’s worse,commercial banks are faced with such challenges as the ever increasing risk of declining profits,liquidity management difficulties and so on,which indicates that the traditional growth model of commercial banks needs to be changed.Only by fully analyzing the external environment changes and their own conditions and status of resource,can commercial banks formulate feasible sustainable growth financial strategy.Thus,financial crises caused by blind high-speed development can be avoided,obtaining sustainable,rapid and healthy development opportunities.Starting from the analysis of enterprise value and enterprise sustainable growth rate,business cycle and enterprise sustainable growth rate,this paper adopts Higgins’s sustainable growth model to analyze the sustainable growth financial strategy of commercial banks via a comparative analysis of the four mainstream models of sustainable growth rate,combining the principles of profitability,safety and liquidity of commercial banks and the factors influencing the financial growth of commercial banks.A further discussion is elaborated about the option of enterprise sustainable development financial strategies when sustainable growth of commercial banks deviates from actual growth.Taking CITIC Bank as an example,this paper makes further study on the application of sustainable financial strategy on the basis of theoretical analysis.Based on the analysis of the development course and competition situation of CITIC Bank,this paper comprehensively analyzes the profitability,operating capacity,debt paying ability and development ability of CITIC Bank through a detailed analysis of the annual financial report data of CITIC bank.Then,based on Higgins’s sustainable growth model,the actual growth rate and sustainable growth rate of CITIC Bank are deeply measured.This paper analyzes the reasons for the deviation of real growth rate and sustainable growth rate of commercial banks and then the financial strategy is chosen.According to the vision of development strategy of China CITIC Bank and combining with the factors affecting the sustainable growth and the actual growth,this paper puts forward countermeasures and suggestions on sustainable growth strategy management in the process of CITIC implement strategy.