The City Commercial Bank Financial Strategic Management Research

As local financial institutions, city commercial banks are not only the local credit funds and financial services providers, but also fuels of urban and rural financial development, occupying an important position in the financial system and providing significant financial support for local economic development. After nearly 20 years of development, city commercial banks have already walked out of the plight of the beginning of the establishment and their.management level, profitability and asset quality have a qualitative leap and achieved remarkable results by digesting the historical burden,exploring the methods of management.At present, as the adjustment of economic structure has been accelerated, city commercial banks are facing an important turning point. Especially in the past two years,the growth rate of city commercial banks has been slowed down and the pattern of profit has been challenged. Facing the new situation, banks have put forward the strategic transformation: to create a “special bank”, “retail bank” and other development strategies.However, the practice of strategy is not easy and lacking of financial strategy support is an important influencing factors.After summarizing the theories of financial strategy management at home and abroad,in this paper, the writer has studied the choices of financial strategy and the implementations of the strategy of the city commercial banks. As an empirical case study,WH bank’s financial strategy management has been analyzed and evaluated. According to the general model,the writer has studied the financial strategy management of city commercial banks in accordance with the environmental analysis, the target determining,the strategy formulations, the strategy implementations and strategy controls.City Commercial Bank financial strategy goal should be based on the full grasp of the internal and external environment of the financial strategy. It should adapt to the development strategy of the bank, to balance the risks and benefits, financial factors and non-financial factors, the current findings and the factors of sustainable development. The choice of financial strategy should be determined according to the characteristics of the life cycle of enterprises, their development strategy and financial strategies. For now, most of the city commercial banks are in the growth period, so they should choose corresponding financial expansionary financial strategy. The implementation of the financial strategy is the important guarantee to realize It can be guaranteed through effective organizational structure, implementation plan, process control, strategic performance evaluation and deviation correction. Strategic performance evaluation index should be in accordance with the value driving factors, reflecting the strategic intent. In this paper, using the method of "balanced scorecard" performance evaluation index of city commercial bank has carried on the design. In the empirical study of WH bank’s financial strategy management, the writer has used the “DuPont” model for comprehensive analysis of the present situation and pointed out the financial problems of WH bank,including the capital return rate(REO)growth depending on the growth of the capital multiplier, The capital adequacy ratio restricting its development and the reduction of the asset utilization ratio. In particular, the author has explained the overall budget control as its management characteristics, and put forward suggestions on establishing dynamic adjustment mechanism, accelerating business innovation, reducing the dividend of cash dividends, etc. Finally, the author has put forward three suggestions: to change the concept of financial management, to establish a dynamic monitoring system, the normalization of financial personnel training.