The Transformation Of Commercial Bank Of China Based On The Evolution Of Division Of Labor

In China’s bank-based financial system,the bank transformation has great practical significance.First of all,it is the real needs of bank development.China’s commercial banks are the traditional banks,providing the limited type of financial services.Especially after entering the new norm of economic development,the lowing efficiency of conversion from savings to investment,deterioration of asset quality and profitability are further intensified.Secondly,it is the real need for financial development.With the deepening of financial reform,such as the new capital regulation,interest rate marketization,multi-type financial institutions,multi-level financial markets,lead China’s banking industry to face increasingly serious challenges,with the size and profit growth space being squeezed.More importantly,the bank transformation determines the level of financial development and the supply efficiency of the financial system.Moreover,the bank transformation ultimately is to promote economic development.After the outbreak of the global financial crisis,China’s economic development gradually has been entering into the new norm,which needs to improve financial efficiency,ultimately to promote economic development.Based on how to study the bank transformation,through the review of existing literatures about bank transformation and financial intermediation,based on the division of labor theory of neoclassical economics,this paper constructs an analytical framework with financial division as the core.Mainly to solve the followingproblems:(1)Theoretical basis.At present,the overall research level of bank transformation is not high,the main performances are:literatures being included by CSSCI are not many,most of them do not have a theoretical basis,generally following the hot issues,resulting in the significance being limited to reply the impact of financial disengagement,interest rate marketization and other.The existing financial intermediary research is not enough to support the bank transition research,the main reasons are:China’s financial intermediary research started late,analysis framework of financial intermediary theory is not uniform.Based on this,this paper chooses the division of labor theory of neoclassical economics as the theoretical basis.(2)Research perspective.The bank transformation is not only the problem of resource allocation efficiency,but also the efficiency of economic organization.Compared with other economic analysis framework,the ultra-marginal analysis can solve the problems of economic organization structure and economic organization innovation more effectively.In the general division of labor model,this paper finds that although the division of labor can improve the efficiency of labor,the level of division of labor depends on the efficiency of cooperation by comparing the two economic organizational structures of self-sufficiency and division of labor.Government,market and enterprise are the basic way of cooperation between human society,which can be divided into three kinds of division of labor.At the same time,information technology is also an important variable affecting the efficiency of cooperation,especially information asymmetry related to the transaction efficiency.In this sense,financial supervision,economic development,enterprise organization,information technology and other issues are the same with the impact of the division of labor on bank transformation.Based on this,this paper chooses the division of labor as a research perspective.(3)Analysis framework.Different from the other type,the bank is a special and core financial division of labor.In order to solve the problem of financial intermediary theory,this paper takes the natural economy of self-sufficiency as the starting point,the conflict between the division of labor economy and transaction cost as the main line.It is found that the bank not only assumes the basic financial functions such as payment settlement and capital transaction,but also provides a mechanism for identifying and screening the valuable social division of labor,which makes the higher value and higher efficiency division type get financial support.In the course of the evolution of the financial division of labor,the financial structure is not only the relative change,but also the absolute change,and following the dynamic equilibrium of economic development-financial development and financial function-financial structure.Then,this paper uses the framework of financial division of labor to study the transformation of commercial banks in China from the perspective of government division of labor,market division of labor,enterprise division of labor and technological progress.The main conclusions are as follows:(1)Perspective of government division.According to the theoretical logic,we should first analyze the perspective of market division,but the transition from the planned economy to the market economy leading to first experience the transition from the professional bank to the traditional bank.Before the shareholding system reform,China still does not exist real commercial bank that it’s objective function and financial function are all substituted.Commercial reform and joint-stock reform together shape the real commercial banks,the new capital regulation promotes the intentional bank transformation.With the connotation of government’s division promoting the social cooperation,the new capital regulation has promoted the development of bank constraints from a simple financial constraints to capital adequacy ratio and capital return rate as the core of the dual capital constraints.(2)Perspective of market division.In the trading activities between economy and finance,banks are part of the financial system and serve economic development.The evolution of division of labor can promote economic development and financial development,and then require the transformation of banks,ultimately promote the development of market economy.The paper analyzes the changes of transaction cost structure in the evolution process of market division,the meta,dual and diversified financial system under different economic development levels,and explains the financial disassociation,disinfecting,homogenization and financing diversification,investment intermediation,interest rate marketization and so on.They are the inevitable occurrence of a reasonable phenomenon.Bank transformation must meet the China’s economic and financial development needs of current stage and the future period,China’s long-term trend of economic development determines the financial development of mixed business direction.(3)Perspective of enterprise division.Through the construction of enterprise division model,this paper finds that there is a dilemma between division of labor and organizational cost.As the economic basis for evaluating the organizational reform,this paper puts forward the scientific connotation of the process bank and the business department system.The core lies in raising the economy of labor division and reducing the bank’s organization cost through organizational change.Finally,by studying the actual situation of China’s commercial banks,including the quasi-regional business unit,the overall large-scale,single income structure,regional structure,further gives specific strategies:planning the strategy of sustainable development,rebuilding the overall implementation of the process of bank,selecting regional division system.(4)Perspective of technical progress.By analyzing the cases,this paper finds that the Internet Finance follows the historical trajectory of the bank and follows the same law which is compatible with the financial needs of economic development and the supply efficiency of financial system.This shows that the financial division can also explain the Internet Finance,which does not change the nature and meaning of finance.Internet Finance also provides a valuable revelation to the transformation of banks:the use of information technology to help the bank to save the transaction cost,and further tap the information and financial resources,and thus base on their own endogenous comparative advantage to form an increasing return on the specialized financial division as the core competitiveness which can not be imitated.Finally,the paper analyzes the shortcomings of this paper and made a research prospect.