Research On Organizational Pattern And Institutional Environment Of Private Banking Business In China's Commercial Banks

With the fast growth of economy in China,Chinese private wealth is increasing with the same trend. It results in flush demand for wealth management from the millionaire group. Private banking shows great development potential,because it is a kind of total professional finance service provided to the rich by commercial banks. In March, 2007, the first Chinese private banking department was opened by Bank of China. Since then, more and more Chinese commercial banks have preparing to open their own private banking department. But private banking is still a new business to Chinese banks and they should face a lot of challenges such as organizational patterns, institutional environment,product designing and so on.The paper has 5 chapters:Chapter1. Introduction. Chapter2. Introduce the conception and history of private banking. Point out the difference between private banking and personal wealth management. Analyze the history of foreign private banking and introduce the useful experiences of these banks.Chapter3. Current situation and problems of domestic private banking. The chapter analyzed the current situation of China and pointed out the problems which needed to be overcome in the course of opening private banking by domestic commercial banks. Chapter4. The proper organizational pattern of domestic commercial banks in opening the private banking. The chapter introduced three kinds of commercial bank organizational pattern and pointed out the difference of them. Then, considered with the condition of China, it told that domestic commercial banks should choose the Matrix Pattern in opening the private banking.Chaper5. Institutional environment and policy advice. The chapter analyzed the external institutional environment of Chinese commercial banks and brought out series of solutions.