China's City Commercial Bank Mergers And Acquisitions Strategy

After the crisis of American economy,the export of China has drastically decreased.Although a hundred milion invest of govrnment has kept GDP index,our economy has deeply hurted. Domestic demand is the stable increase point. Comparing the city commercial banks and local commercial banks in the status analysis and their superiority and inferiority,the city commercial banks are more important in the future.But we should also see that in its developing process,it exposed many flaws,such as:the bad assets amount to be huge,capital in cash seriously insufficiency,single market and so on.After stepping into WTO, city commercial bank had to seek the way and the method for its reform and innovation.In view of this question,considering the status quo and flaws of our country's city commercial bank,the article believes that Mergers&Acquisition is the best way to solve this problem.It not only receives the policy support from supervision organization,the operating process is simple,but has many successful precedents at domestic and foreign countries.Whether the Chinese bank M&As'effect can reach the aim is a problm.In 2007,after Huishang bank's establishing,the Jiangsu bank was established,which was the city commercial bank's another M&A case.This paper analyzes the Jiangsu bank M&A cases in China by the way of DEA and financial ratio analysis.And the conclusion is:The Jiangsu bank's M&A effect is obvious.And it provides successful experience for us to solve the Chinese city commercial bank's development problem in considering the realistic situation of China.Considering the realistic situation of our country's city commercial bank and the Jiangsu bank's innovation in M&A pattern, we believe that the reasonable way for our country's city commercial bank to reform and develop by using the M&A is the strategy alliance pattern, realizing its own development by further using the capital market platform,bringing in the foregin strategic investor,to perfect the law of M&A and enhance the level of finance inspection and focusing on the integration after M&A,so to achieve its development.