Research Of Retail Banking Development Of Our State-owned Commercial Banks

Retail banking business appears just as commercial banking, but it developed slowly until 1970s. In late 1990s, the retail banking business in foreign commercial banks blooms rapidly, contributing 50% or even more to the whole profits.Financial system plays a more and more important role in the development economics. At the same time, these elements, competition, direct financing, and the decline in profits from rate between depositing and loaning, make banks try to change the way of earning money. A hopeful way is retail banking business which is considered as strategical business by banking industrial, because it has all these good features, risk decentralization, stable income, low cost, good prospects. After December 11, 2006, foreign banks are permitted to do business in China in a comprehensive way. So China's retail banking industrial faces competitions from foreign banks. Although domestic banks own a large quantity of branches and customers registered, the situation is still serious, as foreign banks have a long history during which they developed and accumulated great advantages related to finance researching, operating, service standards, promoting, risk controlling and so on.The reason Foreign banks want to enter China's market is China's vast retail banking business prospects and rapid development of rich customers. While in china, Domestic retail banking business has just started, and failed to form a comprehensive retail business system. In competition with foreign banks, domestic banks have to face severe competition. The four major state-owned commercial banks are the mainstay of the banking system in china, so it is meaningful to discuss retail banking business of state-owned commercial banks.This paper, with the consideration of the practice of famous foreign banks and CCB(China Construction Bank), discusses the object about China's state-owned commercial banks and their retail business, especially their disadvantages related to organization structure, corporate governance and channels building. It adopts a research method combines both argument analysis and statistical analysis. This paper also analyses the development of BOA(Bank of America), which is CCB's strategical partner and considered as one of the best retailing banks, and this analysis is meaningful in practice for domestic banks to develop their retail banking business. The features and contributions of this paper lie here.The paper has four major chapters. The first chapter is on the retail banking business in an overall prospect, discusses the definition and theoretical basis; the second chapter is on the development of the western commercial banks, especially BOA; the third chapter is on China's state-owned commercial banks and their retail business development status, especially their disadvantages, the fourth chapter trys to give suggestions on the development of retail banking of China's state-owned commercial banks, these suggestions are summarized in six aspects, organization structure, corporate governance, market, channels building, human resources and risk management.