Coping Strategies Of Commercial Banks In Hunan Province Under The Background Of Overcapacity

After the global financial crisis in 2008,the contradiction of overcapacity in China is particularly prominent,which has aroused the concern of all sectors of society.To this end,the State Council in 2009 and 2013 specifically approved and forwarded the two opinion drafts respectively,that is,Opinions on Restraining the Overcapacity and Repeating Construction of Some Industries to Guide the Healthy Development of Industry and Opinions of the State Council on Resolving the Excessive Contradictions of Production Capacity,to resolve the contradictions of serious overcapacity and timely advance the structural adjustment of the industry.In the national environment of excess capacity,the same problem also haunts Hunan Province.In order to resolve this problem,the Hunan Provincial Government in 2014 promulgated the "Implementation Opinions of the People’s Government of Hunan Province on Resolving the Excessive Contradiction of Productive Forces".This paper mainly studies the coping strategies of commercial banks from the perspective of overcapacity in Hunan Province.The main contents of this paper are composed of five parts.First,the research status of overcapacity at home and abroad is reviewed.Secondly,after putting forward the concept of overcapacity,the reasons for the formation of overcapacity in our country is analyzed from the economic principle of overcapacity.Meanwhile,its main features and performance characteristics are summarized.Thirdly,this paper gives a description on the current situation of overcapacity in Hunan Province.In this part,it analyses the impact of overcapacity on commercial banks of Hunan Province,and points out the new requests those banks made on themselves in coping with overcapacity.This is followed by an analysis on the difficulties,the main methods,the deficiencies and the achievements made by Hunan commercial bank in coping with overcapacity.Finally,based on practical situations,this paper,learning from the international experience,puts forward strategies to help Hunan commercial banks with overcapacity,that is,improving the industry’s ability to identify risks,identifying differentiated credit policies,making credit delivery more scientific,and providing innovative financial services.