Urban Commercial Banks Cross-regional Management Strategy Research

As a local commercial bank,City Commercial Bank's professional mission is to serve the local area and support the local and regional economy,which also embodies its social responsibility.At the end of the last century and beginning of this,in response to the strategic planning for national economic development and to provide better services for local financial clients,China's urban commercial banks began to explore methods of regional development.In 2006,the China Banking Regulatory Commission(CBRC)issued guidelines for the administration of urban commercial banks,and the banks entered a cross-regional development stage.In 2011,as banks around the country began to deploy cross-regional expansion,regulatory authorities implemented a tight financial regulation policy,further strengthening the regulatory measures for urban commercial banks.They proposed that branches of these banks should not expand blindly but should proceed prudently.Only those banks with standardized management and mature conditions are allowed to set up trans-regional branches in their provinces.The establishment of cross-regional branches provides strong support for development of the head offices.This support helps the head offices better serve regional economies,disperse operational risks,and achieve expansion of scale in a short time.Nowadays,the upsurge of inter-provincial expansion of the early days has long receded.Some urban commercial banks' branches in other provinces have left the shelter of their hometowns to join in the development of other areas and have made real contributions to serving the economy and supporting local construction.After completing the mission,there are also some outside branches fighting alone in the alien environment.The lack of systematic development planning and guidance leads to the brain drain,losing control of risk-prevention,low asset quality and high frequency of complaints.This paper is divided into five sections.By studying the successful experiences and continuing problems in the operation and development of eight inter-provincial branches of urban commercial banks in S region,the writer hopes to uncover the countermeasures that are conducive to the effective operation and development of such banks and that promote healthy and sustainable development of branches.The first section is an introduction,mainly describing the background,significance,literature review,research contents and methods of the thesis.Section two analyzes the overall situation of cross-regional development of urban commercial Banks in China.The paper expounds the overall development of urban commercial banks in China.Urban commercial banks have been a resource in China for more than 20 years.The development model of China's urban commercial banks is briefly described,including joint restructuring,initiating and setting up rural banks,exploring international experience,introducing overseas strategic investment,and participating in non-bank financial services.The paper expounds the role of urban commercial banks in serving the real economy and satisfying the financial services of community residents in local areas.I also look at the internal and external reasons for the inter-regional development of urban commercial banks and the access policies of the inter-regional development of urban commercial banks.Section three considers eight sub-branches of commercial banks outside the province in S region as examples,analyzes the present situation and existing problems of sub-branches outside the province in the operation and management of such banks,and inspires the cross-regional operation and development of urban commercial banks.The writer illustrates the operation and development of sub-branches of commercial banks in cities outside S province.Through data analysis,the asset size and quality,and business development of different branches of eight urban commercial banks in this region are analyzed.I also analyze the positive practices of the operation and management of different branches of commercial banks in cities outside the province S.The writer analyzes the management mode,characteristic financial services and products,protection of consumer rights and interests of the banking industry,and other contents of different branches of commercial banks in cities outside S province through individual cases.I analyze the problems in outside branches' operation and development.This part mainly analyzed market positioning,risk management,personnel management,product and service complaints in outside branches.Digging out how to lead to orientation deviation,weak risk control ability,frequent mobility and lack of the consciousness of protecting consumer rights and interests.Finally,SWOT analysis method is adopted to analyze the advantages and disadvantages of the operation of different branches of the banks,as well as the opportunities and challenges in the development of the region;it is also employed to find a suitable path for its development.The fourth section offers countermeasures and suggestions for the cross-regional operation and development of urban commercial banks.On the one hand,the paper presents countermeasures to strengthen the management of City Commercial Bank's branches from the market positioning,risk management,products and services,consumer rights and interests protection.On the other hand,it presents supervisory suggestions to promote the healthy development of City Commercial Bank branches outside the province.From the aspects of access policy,planning arrangement and off-site supervision.Section five is the conclusion of this paper.Through analysis and research,it is concluded that the cross-regional development of urban commercial banks should not be blindly followed.Moderate and steady cross-regional development is conducive to the development of urban commercial Banks,making up for their shortcomings,and further improving their overall comprehensive strength and market competitiveness.Our research on the cross-regional operation strategy of urban commercial banks can provide reference for the development of small and medium-sized commercial banks in China.