Study On China's Commercial Banks' Private Banking Business

Private banking is a kind of personal banking business which is specially tailored for the VIP customers. The emerge of disinter mediation, the carry-out of the inter industry competency, and the development of the IT make the international banks begin to give the private banking a higher strategically prospect. The China's commercial bank is now facing the problems such as the floating of interests rate, the increase of restraining capital, the fierce competition from international banks. So the reform and adjustment of the traditional banking business structure is necessary. The stable and overall increase of the national income, the polarization of the social wealth, and the increasing awareness of personal wealth give the commercial banks a huge market for personal banking. So, it is the time for China's commercial bank begin to study the private banking business. But there are still many problems existing in the domestic private banking business such as the lack of the creative ideal and the shortage of the specialists in the relevant field. Through the investigations on the private banking business of the international banks in western countries, we conclude that China's commercial banks need to solve the following 4 problems before they can start the private banking business in a big scale.1) the carry-out of the inter industry competency under the existing financial policies;2) increase the stock of the personals in financial plan field.3) segment the market, choose the customer.4) make the price of the private banking products more clear.This paper includes 5 parts. In part 1, we introduce the history of the private banking. In part 2, we are trying to identify the background which make international banks increase the strategically level for private banking. In part 3, we give a study on the environment, the current development and the existing problems for China's private banking business. In the part 4, we give some illustrative examples, which include the private banking business of international banks in western countries. In the part 5, we give some suggestions on the future development of China's private banking.