China's Commercial Banks Marketing Innovation And Risk Prevention

With the coming end of the transition period of China's accession to WTO and underthe globalization trend in finance industry, foreign banks quicken their paces entering intoChina. Up to March 2004, there are 62 banks from 19 nations establishing 195 operatinginstitutions, in which 88 have been approved for RMB business. The total foreign banksassets have achieved $53.6 Billion, accounting for 1.6% of total financial institutions assetsin China. Encountering the intensive competition in the financial market, Chinesecommercial banks are only under their early stage of development with poor conscious ofmarketing innovation, risk prevention, draggling management experience, low capitaladequacy ratio and high NPL balance. This paper would use the comparison researchmethod, based on advanced commercial banking theories and foreign banks' cuttingknowledge in marketing innovation and risk prevention and provide suggestions to Chinesecommercial banks in purpose of combining the theory and practice.The author will first review western commercial banks' development theory and bestpractice, and then analyze the current risk problems and macro-environment as well as thedetail problems Chinese commercial banks face. Based on these deep research, the authorwill put forward the basic development strategy, that is update the basic mindset, structurenew system with marketing as the core, proactively launching internal marketing strategy,establish systematic marketing evaluation mechanism, execute banking evaluation strategyand strengthen the banking ethics cultivation.