Research On The Development Strategy Of Community Banks In China's Commercial Banks

Since the development of retail business in 2013,the development speed of domestic community banks has increased a lot,which is due to the notice of General Office of China Banking Regulatory Commission on matters related to the establishment of community branches and small and micro branches by small and medium-sized commercial banks(CBRC office [2013] No.127),which not only standardizes the development of community banks,but also provides policy support for them.The establishment process is more convenient than that of traditional full-function outlets.As a result,the enthusiasm of small and medium-sized banks,especially the national joint-stock commercial banks represented by Minsheng Bank and Industrial Bank,to set up new community branches has been fully aroused,and the construction of community branches in various regions has been accelerated,showing a rising trend.However,with the rapid increase in the number of community sub branches,the problems of unclear construction mode,business mode and profit mode have gradually emerged: in fact,the "light-duty network" has a lot of investment,the business type and service mode are highly overlapped with the adjacent full-function network,but its professionalism is insufficient,and after a long period of operation,it is still unable to achieve self financing profit and loss and sustainable growth,and so on.The emergence of the problem led to the rapid growth of the number of community branches in the same industry.Since 2016,there has been a large area of "store closing tide".Based on the case of Kunming Branch of GD bank,this paper finds out the problems existing in the development of joint-stock system and commercial banks in community banks,and puts forward suggestions for development.GD Bank Kunming Branch has 18 business outlets with nearly 500 employees,covering most of Kunming's major administrative regions and Qujing City.By the end of 2018,Kunming Branch had 12 formal external business institutions,an increase of 4 over the previous year.Among them,there are 3 large outlets,5 medium outlets and 10 ordinary outlets.Kunming Branch of GD bank,as the first level branch of GD bank established in Yunnan Province,is facing the main problems of insufficient channel coverage,slow business development and high dependence on public business.How to use community banks to improve channel coverage,improve retail business and promote the proportion of asset scale growth of the whole bank is the main problem at present.Based on the study of the current situation of the development of community banks in China and the comparative analysis of the development of community banks at home and abroad,this paper finds the problems faced in the development of joint-stock commercial banks by using the case analysis.It also uses the related theoretical research of community banks at home and abroad and the face of Kunming Branch of GD bank.The internal and external environment puts forward development suggestions,which will improve the development path and profit model of community bank,enhance the competitiveness and brand influence of GD Bank Kunming Branch,and play a positive role in the future development of community bank business for other joint-stock commercial banks.