The Development Research Of China Commercial Banks' Retail Business

Retail business of commercial banks has been developing for hundreds of years in developed countries. And retail business profitability also reached to a significant degree, which becomes an important area for profit growth in Commercial banks. However, the retail businesses have been ignored by the banking industry in our country for a long time, and retail business is undeveloped. With the maturing of the wholesale of commercial banking business, both the scale and profit possess the downward tendency, effecting the operation of development of commercial banks. Disintermediation made a great amount of large companies and enterprises turn to stock and bond market to raise funds, So that the profits of commercial banks declined. Considering of international completion and self-development, it is necessary to make commercial banks carry on retail business to expand the profit space and to intensify the competitiveness of commercial banks. The rapid emergency of the middle-class provides enormous market demand for the retail business of commercial banks. So, on one hand, we must formulate the strategies to develop the retail business and then occupy the market; On the other hand, the Chinese-funded banks must overcome the blindness and randomness on the development of retail banking. In the paper, based on analyzing retail business of commercial banks, the problems existing are raised. And by learning from the development of international retail business, some suggestions are given about the development of retail business of commercial countries in China.The paper consists of six parts. The paper begins with introductory Chapter 2 provides an overview of the meaning, content and characteristics of retail business of commercial banks. The importance to develop retail business is also mentioned. The development of retail business in developed countries was reviewed in Chapter 3, including the present status, cause and trends of development. In chapter 4, the developing status of retail business of commercial banks in China and the problems are described. First, retail assets, debt, and intermediate business of retail business were analyzed, and the case of small and medium-sized equality joint commercial banks was taken, especially (China Merchants Bank ) In chapter 5, the solutions to solve the problems of retail business were raised. Chapter 6 consists of the conclusion and prospect of the study.It is presented that the commercial banks in China should learn from the development of retail business in developed countries and then takes advantage of traditional competition to make the retail business develop rapidly. Also, the retail business should be developed by forming stronger sense of services, increasing the product creativity and exercising better risk management.