Research On Cross-regional Development Strategy Of City Commercial Banks

After more than 20 years of rapid development,city commercial bank has experienced high growth in assets.since Shanghai bank first established Ningbo branch in April 2006.city commercial banks in particular small commercial banks practice to enhance market competitiveness and sustainable development momentum,turning the development focus to the cities with large market potential and development space outside the region.With regard to the demand for trans-regional operation of the city commercial bank,the regulation policy is becoming more and more relaxed,the conditions and models required for the development of the cross-regional development will be gradually upgraded to the establishment of different branches of small and medium-sized commercial banks,it has accelerated the establishment of a new branch of the city.In November 2017,Ministry of Finance of the People?s Republic of China disclosed that it would eliminate the restriction on the shareholding ratio of a single Chinese bank with no more than 20 percent,it will further enhance the capital strength of small and medium-sized city commercial bank,enhance the enthusiasm of cross-regional operation and market competitiveness.This paper explores how QS Bank find the business strategies and path suitable for its own development in the cross-regional operation.And then the paper concludes that the differential management and specialization operation are the only way for the development of city commercial banks.As the fourth batch of local joint-stock commercial Banks established by urban credit cooperatives,after more than ten years of rapid development of Qishang bank,under the excessive market competition,it also faces the development bottleneck of regional share decline and regional risk accumulation in a single region.The rush of trans-regional operation and the affirmation of regulation policy to city commercial bank,it has also inspired the Qishang bank to join the expansion.On December 22,2007,the first inter-city provincial branch was established-Qishang bank binzhou branch.,eight other foreign institutions have also been set up.It has been proved that trans-regional operation has become a key point for city business to break through its development bottleneck and become a strategic development.The main content of this paper falls into five parts: The first part summarizes the research achievements of domestic and foreign scholars on the cross-regional development of city commercial banks.The second part introduces the theoretical basis of the cross-regional development of city commercial banks through methods such as literary analysis and comparative analysis.The third part summarizes the general situation and main business model of the cross-regional development of the city commercial banks.The fourth part adopts the practical cases in the cross-regional operation of QS Bank,including the market positioning and development strategy of the cross-regional branches of different regions and different scales,management methods,management characteristics and development experience and finds out the main problems of QS Bank's cross-regional operation and the causes of problems.The fifth part of this paper summarizes the cross-regional development of city commercial banks and proposes cross-regional development ideas and policy recommendations,which Includes the improvement of corporate governance,market positioning,development model,path selection and strategic planning.In addition,this paper makes the prospective analysis of the implementation of urban commercial banks' cross-regional development and points out that the characteristic and differentiated development of urban commercial banks are the mainstream trends.This paper strives to make a rewarding exploration of the model and orientation of the city commercial banks' cross-regional development as well as on the measures we take.