Study Of Localization Of Foreign Banks In The Corporate-oriented Business Strategy

On December 11, 2006, the 5-year protection period after China entering into WTO ended and China's financial industry opened to the outside world ail-roundly. Along with the promulgation and the implementation of "Regulation of the People's Republic of China on the Administration of Foreign-funded Banks" and "Detailed Rules for the Implementation of the Regulation of the People's Republic of China on the Administration of Foreign-funded Banks", the Chinese banking industry has entered a new corporate-oriented era. In the face of the renovation and the change of the regulatory policy and the increasingly intense competition, all the foreign-funded banks in China need to find their own development strategy. As a HongKong-funded bank which has taken root in China for near a hundred years, how E Bank establishes the suitable localization strategy for its corporate banking business in corporate-oriented domestic market is exactly the key point studied and discussed by this paper.Through analyzing the development course and the status in quo of China's financial industry, comparing the regulatory policy changes between non corporate-oriented and corporate-oriented, going deep into the external environment of E Bank (China), and fully understanding E Bank's history, actuality and competitive condition based on all kinds of materials, the author has found out E Bank's strength and weakness by using strategic management theory and analysis tools. After the foregoing theoretic and demonstrative studies, the author has tried to bring forward the localization strategy of E Bank (China) on its corporate banking business and the detail suggestion for strategy implementation.In the part of establishment and implementation of the localization strategy, by employing PEST and SWOT techniques respectively, the author has analyzed the external competitive environment and E Bank (China)'s own competitive power including strength, weakness, opportunity and threat. And then, according to the resources and abilities possessed by E Bank (China), its localization strategy on the corporate banking business and feasible operation scheme have been framed. E Bank (China) must program and review its localization strategy at all aspects, such as business development, market deploitation, risk management, performance assessment, competition and co-operation with other banks, operation support, enterprise culture and human resource management, etc. And through outspread organization, innovative product, leading technique and outstanding service, E Bank (China) will make achievement in localization, in further business development, in providing quality service to local customers and creating maximized value for shareholders.The creative ideas of this paper might be as follows. Firstly, based on analyzing the changes of banking industry regulatory policy after China entering into WTO, the author has put forward the localization strategy for E Bank (China) which would be applicable for the development of other foreign-funded legal-person banks in China. Secondly, through examining the opportunities and challenges faced by E Bank (China) and discovering its competitiveness by employing PEST and SWOT techniques, the localization strategy on corporate banking business of E Bank (China) has been established. Thirdly, with a lot of practical significance, detailed proposal on the implementation of localization strategy has been made in the paper which involves business and product, human resource management, market deploitation and operation support.