The Study On The Reforms In The Organizational Structure Of The Commercial Banks In China

With the all-round opening-up of China's domestic financial industry to the foreign investment, henceforth, the competition in the banking sector will become increasingly furious, apart from that, the traditional headquarter-and-branches organizational structures being practiced by the domestic banks have failed to meet the needs of the competition in the future market. In recent years, fruitful results have been achieved in the reforms in China's banking sector, major commercial banks have all established modem corporation system, most of which have got listed in the domestic and overseas market, besides, flat management with less hierarchies have been widely acknowledged and ail-roundly popularized. However, up to this day, there is still a big gap between the organizational structure of the state-owned commercial banks and that of the foreign-invested commercial banks, mainly in terms of the vertical management directly related to the flat management pattern as well as the procedure optimizing, it has come to this situation where reform and innovation are urgently needed.The organizational structure of commercial banks is indicated in the ultimate fundamental competitiveness, mainly consists in: Firstly, organizational structure is the carrier for commercial banks to achieve their strategic goals and to establish core competitiveness, as well as the base on which the operation and management of commercial banks rely; secondly, the operating methods of commercial banks are the vital factors deciding their operational efficiency, and have crucial influences on boosting the economic benefic and long-term development of commercial banks.This thesis conducted a research on the organizational structure of the commercial banks in China, by utilizing the relevant theories and rationale on corporation organizations, in the 5 parts as follows:Chapter one: summary on the research. This chapter made an introduction about the background, main issues as well as the meaning, thinking pattern and the analysis framework of this research.Chapter two: the development of the theories on corporation organizations. This chapter made an introduction about the origin and development of the theories on corporation organizations as well as the major forms of organizational structures in modern corporations.Chapter three: the development of the organizational structures in banks. This chapter conducted an introduction and an anatomy on the developing trend of the organizational structures in modern commercial banks and focused on the practice of unit operation system in foreign banks. Besides, it conducted an analysis on the comparison between the traditional headquarter-and-branches system and the unit operation system, in terms of organizational structure, operation model, financial management, reports line, the allocation of resources, risk control and management, etc.Chapter four: current situation and analysis of the organizational structures in China's commercial banks. This chapter anatomized the status quo and the existing problems of China's state-owned commercial banks.Chapter five: the implement of the reforms in the organizational structures of China's state-owned commercial banks. This chapter illuminated the necessity and feasibility of the reforms, put forward the objective of developments, analyzed the current exploration carried out by banks, and brought forward the main framework as well as the relevant approaches to the reforms, at the same time, conducted an analysis of the difficulties and countermeasures for the reforms.Conclusion: the organizational structure being practiced by China's commercial banks have obviously failed to meet the needs of the economic developments and the competition in the market, thus, it has to be reformed towards the unit operation system. However, due to factors such as the conventional thinking pattern, management basis, technology levels, etc, there is a long way to go before achieving the unit operation system, of which this thesis put forward an idea for development including two phases.