Under The Scope Of The Joint-stock Commercial Banks Economic Perspectives Strategic Choice

The development experiences of the stern banks tell us that in a mature financialmarket, there are only kinds of bank can survive from the intense competition—universal banks and specialized banks. The joint-stock commercial banks should adoptdiversification strategies and try to be a universal bank or adopt specialization strategyand try to be a specialized bank. Controversy over this issue has been relatively large,there are some scholars explained this problem from different perspectives, but thereisn’t a unified result.Thus the author put forward the proposition that economies of scope—diversification strategy—universal banking, So as to explore the inner relationship ofthe scope of economic and business strategy selection of the joint-stock commercialbanks. In the paper, the author analyzed the factors affecting of the strategic options andeconomies of scope in commercial banks with the standard research methods. After that,the author made an empirical analysis of the joint-stock commercial banks’ operatingconditions in2006-2011with the translog cost function model.The main conclusions of the study are the following. First, the scope of economicefficiency and business strategy selection in commercial banks are mutually reinforcing.Second, according to the empirical results, economies of scope in china’s joint-stockcommercial banks is very significant. Especially, the elastic coefficient of interestincome on fee income is quite large, it means carry out intermediate business have agreat role in promoting the development of the traditional business. Third, at presentstage, the specialization business strategy is not the best choice to china’s joint-stockcommercial banks, and the diversification strategy is more conducive to a healthydevelopment of the joint-stock commercial banks.These conclusions provide atheoretical reference for the joint-stock commercial banks in operating strategyselection. Simultaneously, these conclusions give the government some inspiration inpolicy-making.