Research On The Application Of Financial Strategy Matrix Of Agricultural Bank Of China

Commercial Banks occupy a very important position in the national economy.It is not only the primary transmitter of the central bank's monetary policy,but also the hub for raising and allocating funds for national economic construction,which ensures the smooth progress of social reproduction.As China's economy has entered a new normal,the process of interest rate liberalization has accelerated,and foreign banks have poured in.China's banking industry is now facing unprecedented opportunities and challenges.The Agricultural Bank of China is the first state-owned bank which was established after the founding of New China.It is representative in the banking industry in our country,and at the same time,it also assumes the responsibility of serving agriculture,rural areas,and farmers,It has an important supporting role for China's primary industry.In the face of increasingly fierce competition situation,the Agricultural Bank of China has paid more and more attention to the forward-looking and predictive nature of its financial strategy when it comes to financial management,so that it can cooperate with the enterprise's strategic transformation to enhance its core competitiveness.Therefore,it is imperative to explore and formulate a strategic corporate financial strategy.However.The financial strategy matrix theory is a study which can research from the perspective of strategic development on the erteeprise's financial status,through the construction of a corporate evaluation of sustainable growth capacity and economic added value of the two major systems,reflecting the company's capital surplus and lack of state and value creation capabilities,It can provide more valuable reference for the formulation and decision-making of corporate financial strategy.This article choose Agricultural Bank of China as the research object,selects its relevant financial data listed on the Shanghai Stock Exchange from 2012 to 2016,and uses the financial strategy matrix to calculate the status and value of the funds of the Agricultural Bank,and then constructs the financial strategy matrix model of the Agricultural Bank of China.And found that ABC finally locate in the third quadrant of the matrix,belonging to the capital surplus but value depletion-type enterprises.Then from the perspective of the financial strategy matrix,the article analyzes the reason why the agricultural bank located in the third quadrantand gives recommendations for optimization.Finally,it summarizes the research conclusions of this article and points out the limitations of this study.By means of the analysis and application of the financial strategy matrix theory,this article perfects the existing financial strategy evaluation and decision-making system,and proves the feasibility of the theory in practical operation.It has a very good theoretical significance.Through the research on the case list of a representative enterprise of the Agricultural Bank of China,we can fully understand its financial strategy and its shortcomings,and propose targeted strategic improvement scheme for the managers of the Agricultural Bank of China to help the companys long-term development.At the same time,it also provides financial strategy research for reference for other enterprises in the industry,and has practical guiding significance for the development of the entire banking industry.