Innovation Research On The Operating Mode Of Small And Medium Sized Commercial Banks In China

With the development of Chinese financial market，demand of bank industry ishigher and higher. Small and medium sized commercial banks have made certainachievements in asset， capital and operation after years of development. Since thelarge-scale commercial banks have begun to reform which makes the road harder forsmall and medium sized commercial banks. Because of the banking of Chinadevelop later than that of developed countries as well as exploration in operation.Especially the establish of small and medium sized commercial banks weresupported by government， which exists administrative intervention strongly sofar. There is no essential change to innovative bank ideologically.According to the definition of the china banking regulatory commission， smalland medium sized commercial banks include shareholding commercial banks andcity commercial banks. By the end of2012， a total number of China’s small andmedium sized commercial banks is166， with12shareholding commercial banks，144city commercial banks， and11listed banks. After10years of development，the proportion of asset of small and medium sized commercial banks increased yearby year and reached27.83%at present. But there is still a group of problems such asbackward organization， unreasonable business structure，single system， datedoperating conception， inaccurate market positioning， irrational allocation ofresources， lack of human capital， imperfect internal control and risk managementsystem and the lack of innovation. The problems， including the marketization ofinterest rate，financial disintermediation， government intervention and the overall legal environment bring great external challenges. These factors to a large extenthinders the development of small and medium-sized commercial banks; at the sametime， the future of small and medium-sized commercial banks should be treatedseriously， due to which occupies a very important position on the banking industryand even the whole economic system.In this paper， first discusses the definition of small and medium sizedcommercial banks under different conditions and general characteristics from thesmall and medium sized commercial concept，and have a general understanding ofthe China banking industry overall; define the operating mode which includesorganizational structure， business scale， management model， and strategicdevelopment. Second， we are able to able to draw preliminary conclusions afteranalysis the inner and outer situation and comparing the operation of medium andsmall commercial banks of China with large scale commercial banks and foreignbanks; then explore the small and medium-sized banks in developed countries，suchas Japan，Germany and America，we can get the analysis of its success and failureexperience， and summed up the same law of the existence. Finally， givesuggestions to the development and operation model of the small and medium-sizedcommercial banks in China，give advice to development and reform which includesvarious aspects of organizational structure， business structure， process system，operation mode and so on， which has certain significance for small and mediumsized commercial banks and lead to a road of clear positioning，independentmanagement， differentiation of product and service， high quality and innovationwith Its own characteristics.