The Strategic Choice Of Commercial Bank Inter-bank Cooperation

Institutional banking business is one type of financial service offered among financial entities,with capital financing as the core business.It plays an important role in coordinating comprehensive business among different financial entities,improving financial services and extending the chain of financial products.As China’s economy enters a new normal,interest rate accelerates to be liberalized,and financial supervision becomes stricter day by day.Furthermore,internet banking also brings enormous challenges to traditional commercial banks.With such economic environment,Industrial Bank has to restructure its own strategy for institutional banking business,especially the Level One branches as the major players.How to break through the bottleneck on the basis of current cooperative relationship and how to get deeper cooperation with local corporate banks are the key issues to be faced and solved.This paper takes Industrial Bank Suzhou branch as an example to discuss how to make development strategy for its institutional banking business.By applying relevant theories of strategy management,it studies both internal and external environment faced by Industrial Bank Suzhou Branch,analyzes strategy combination with SWOT matrix and makes development strategy based on all the research.This paper follows the approach of problem shooting,analyzing and solving.The first chapter is to introduce the background of the article,pose the problem,and review the theories.The second chapter,through the introduction of concept,classification and development of commercial banks’ institutional business,analyzes and introduces the development of Industrial Bank,and then summarizes its institutional business’s characteristics and bottleneck.The third chapter points out the obstacles of the institutional business,by analyzing the current situation of the cooperation between other commercial banks.The fourth chapter,through the internal&external environment analysis and the use of SWOT matrix,finds out the optimal strategic combination and makes the development strategy.Through the research and analysis,it is concluded that the strategy for the Industrial Bank Suzhou Branch’s institutional banking business shall concentrate on the WO strategy and ST strategy.The specific development strategy is to understand customer needs,grasp the starting point of cooperation,improve the service by using the platform of headquarter,enhance marketing efforts,implement talent strategy,foster the competitiveness and level up the entry barrier.