Research On The Development Strategy Of Huaxia Bank Changchun Branch

Competition in bank sector has been fiercer since foreign banks entered China in2006. As the "Rising Star" of China financial market, Joint-stock commercial bankstake scientific and reasonable development strategy as one of the important measuresof achieving the purpose of rapid and sustainable development to survive in thecompetition of the big four state-owned commercial banks and foreign banks.Several national joint-stock commercial banks have entered Changchun marketduring2007-2010, they have experienced the period of international financial crisisand assets and liabilities have expanded rapidly as the result of large amount creditexpansion. Changchun Branch entered into the market in August2011andencountered series of challenges caused by outside environment and regulatory policy.First of all, expansion model of relying on large credit expansion can’t be repeated asthe monetary policy has adjusted from loose policy to prudent policy. Secondly,banks have been pushed to change the profit model under the circumstances ofinterest rate liberalization. The third, Credit amount has been restrained as the resultof financial disintermediation and capital constraint, and banks are under the pressureof development of profit improvement. Forth, under the impact of the new roundEuropean debt crisis, the real estate regulation and government financing platformcleaning, risk control become more difficult. As the result, the new Branch must bevery prudent when choosing development strategy under the complex economic andfinancial situation.For the present situation of Changchun Branch, its expanding progress was slowrelatively due to its prudent management method and the deteriorating externalbusiness environment. In this article, the author reviews the one and a half yearsdeveloping history of Changchun Branch within his own experience, analyzes the advantages, disadvantages, opportunities and challenges of Changchun Branch on thejudgment of the current situation and future perspective, then proposes the strategictarget, marketing position and specific method to gain the advantage in the next fewyears. Changchun Branch will follow the strategy of “Financial service supplier forsmall and medium-sized enterprises”,take the method of “Merging into localeconomy” and “Keeping pace with the opponents”, chooses the favorable industryand focuses on the small and medium-sized enterprises, stabilizes the traditionalbusiness area and explores the emerging business, strengthens the local corporation ofbusiness and government, catches the market opportunity, enlarges the customeramount and increases the market share. Changchun Branch will struggle to reach theaverage level in local bank market in the next five years.