Analysis Of Development Models Of Private Banking In China

Many former fame financial giants have torn devastation in the financial turmoil in2008, but there are a number of financial services relative didn’t affected by the crisis. For example, the income level of the private banking business dropped significantly, but more than90percent of the world of private banking in the context of the financial crisis is still creating a profit, and private banking business can adjustment of the operating mode quickly according to the external business environment, which reflects compared with investment banking, private banking performance for as long as a stronger fight against systemic risk. In the post-crisis era, the private banking business will grow into a new profit growth point in the global commercial banks.The private banking sector has a vast space to China’s banking. On the one hand, the increasing scale of China’s affluent population, the demand of investment is growing. On the other hand, the potential threat of interest rate liberalization and financial disintermediation means that dependent on credit expansion, extensive model of development has been unsustainable. The private banking business throughout the multiple areas of retail banking,wealth management and investment banking,which is an important starting point for Chinese commercial banks.2011is the first five years of Chinese"12th Five-Year" plan,which means internal and external risks to financial practitioners, the sovereign debt crisis and the expected second bottom of world economy has led to severe shock to international financial markets and commodities. China’s economy is conducting a difficult transitionin in the complex internal and external contradictions.Under this context, China’s private banking industry need to analyze the general trend, grasp the direction, sum up experience and look ahead. The private banking business in China is still in its initial exploratory stage, which as a starting point of this article, I’ll explore the development path of private banking which fit to Chinese commercial bank from the external environment and internal factors, the successful experience of foreign well-known private banking product architecture, service mode and operation mechanism,and make recommendations accordingly on this basis.This article is divided into three parts and the main content is:The first part of this article are some basic theoretical work, mainly on private banking concept and origins, characteristics, and have a comprehensive understanding of core business and the introduction of domestic and international literature review and comparative analysis of private banks. A brief course of development of the global private banking and private banking area is divided into Europe, North America and Asia, and in the three regions selected sample of private banks, including UBS, Citigroup and HSBC to analyze the elements of success, to mention a certain reference in the East on the below to explore the development of China’s private banking model.The second part is a description and analysis of the development of private banking model. From the flow of private banking operations, its organizational model, service model and profit model the development of the private banks play a crucial role.This article will focus on these three areas to analyze the mode of development of the private banks. Classification introduced first on the private bank of the Western organizational model, service model and profit model and comparative analysis. Followed by the introduction and analysis of the development model of China’s current private banking and private banking in China different from Western countries, the reasons for the choice of organizational model, service model and profit model based on China’s national conditions, and to the mature Western private banks the development process and experience of our private banking model of development problems and obstacles.The third part of the main problems and obstacles in our private banking model of development on the basis of the second part of the proposed recommendations for improvement and measures, combined with Western development experience to look forward to the development trend of China’s private banking.