The Study Of Cross-border RMB Business Development Strategy In BOC Jiangmen Branch

After the adoption of reform and opening-up policy, China has switched to the fast track of foreign economic development, followed by greater influence in international events. Under this background, it is a rising and prosperous business to conduct cross-border RMB business among commercial banks. Supported by the push-up policy and the improvement of RMB exchange rate formation mechanism, cross-border RMB business has undergone a remarkable development. Yet there are still some challenges to be met due to its infancy----incomplete free-exchange, limited international acceptance, imbalanced development among regions. Commercial banks are confronted with some problems as well----lack of foresight consideration of business development, a sound risk management of products, market acumen of cross-border RMB finacial products and talents for this business.This paper is going to develop from the microeconomic perspective. By analyzing the status quo of cross-border RMB business in Jiangmen Branch of Bank of China (BOC), corresponding measures that aim to implement safeguard measures and enhance market competiveness will be generated at the end of this paper. In the first part, literature review will cover issues of cross-border RMB business, choice of valuation currency, the management of strategy theory and the viewpoints of professionals and scholars. Then PEST method, SWOT method will be applied to analyze the internal and external factors that constitute the strength, weakness, opportunity and threat of the local bank. Based on the external analysis, this paper will proceed to generate strategic measures to promote cross-border RMB business expansion by formulating transformative strategy to coordinate intermediary business with assets and liabilities business, branding strategy to build an image of authority, product strategy to initiate new method for settlement and marketing strategy to differentiate from other competitors. On the internal analysis, local bank of BOC is suggested to proactively construct inner and outer conditions, intensify the role of leadership, simplify business processing, cooperating with other domestic and foreign institutes, streamline personnel structure and improve related regulations and system. At the last part, this paper will conclude that the new-born cross-border RMB business is a good opportunity for local bank of BOC to pave a new path for its development, innovating management mode, innovating product advantage, occupying the commanding heights of cross-border financial service standards, so as to grab larger market share, improve economic efficiency as well as social efficiency, become the benchmark bank of cross-border RMB business in financial service field, and promote the process of internationalization of the RMB.On discussing the mode of developing cross-border RMB business for local bank, this paper plays a significant role of forerunner to enlighten other financial institutes on the similar business.