Research On Liability Structure Of Large Commercial Bank And Its Optimization In China

At present the main part of the financial system is commercial bank in China. Along with enter ring into WTO and opening financial markets, the competitions among domestic commercial banks are becoming more and more intensive. Because at present business model of commercial banks in China is single and homogeneous, which is becoming obstacles to the development of banks, however, diverse and differentiated business model must have the appropriate supporting of structure of assets and liabilities. Thus studying how to optimize the structure of bank assets and liabilities and enhance the competitiveness of banks is a very meaningful issue. Liability service is the base for bank’s other businesses, which restricts the development of other businesses. However, the reasonable liability structure is the key to success of liability service. At the face of the needs of international banks and the business model changing, optimizing the structure of bank liabilities can reduce the constraints which are because of liability service between assets business and intermediate business, and achieve the diversification of banking business. Beginning with studying the differences in liabilities structure of large commercial banks in China and abroad, this paper tries to find out characteristics of the structure of bank liabilities in different business models, and puts forward relevant actions to how to optimize the debt structure of China’s large commercial banks and form differences in management.This paper selects some major domestic commercial banks which are large, strong, and typical, and foreign banks which are on the top ten ranking in "The Banker" magazine in2010, as the studying subjects. Firstly, it analyses the present situation of large-scale structure of commercial bank in country and how it will develop in the future, and researches the rate of deposit in total liabilities, the sources and liquidity of deposit. Secondly, it analyzes liabilities structure of commercial banks in abroad and finds out characteristics of the structure of bank liabilities in different business models, analyzing the differences of liabilities structure between large-scale commercial banks in China. It finds some questions, such as the existence of deposit product homogeneity in the liability structure of our large commercial banks, restructuring debt difficultly, lack of initiative liabilities, single-use bonds. According to the shortcomings which exist in the liability structure of large commercial banks in our country, this paper brings forward the following improving measures:First, improving the external conditions for banking operations; second, reducing the liability of passive debt dependence by actively entering the annuity market and re-issuing negotiable certificates of deposits; third, increasing the proportions of all bank’s loans by prudent increasing in derivatives liabilities strengthening product sales and the foreign bank loans; fourth, expanding the proportion of bonds. This paper comes up with a way to deal with the differential development between state-owned commercial banks and joint-stock commercial banks.