Research On The Transformation Strategy Of Commercial Banks

Small and medium commercial banks are an important part of China’s financial system, which is conducive to improve our financial system to better serve China’s economic development. But in the subprime mortgage crisis, the financial impact of financial globalization and the Internet, small and medium commercial banks are facing market environment policy and its own operating system and other factors changed dramatically. In addition, compared with the large commercial banks, small banks at a distinct disadvantage, competitive pressures it faces are gradually increasing, coupled with the powerful offensive of foreign banks, the current development of China’s small and medium banks encountered a series of unprecedented might threaten the survival of the change. Therefore, our study of small and medium commercial banks operating in transition is an important and urgent proposition.In this paper,I based on path differences in management theory of small and medium commercial banks. I make X-bank for an exmple, introducing its transformation motivation, compared to the operating conditions described in the listing of the bank eight years, the analysis of its business strategy in the past shortcomings of the current operating environment. Summarizes the results of its operations and problems of transition, analysis of the comparative advantages of state-owned banks with large banks X and comparative advantage X banks with other small banks.X bank founded to serve the local economy, local residents have a comparative advantage, and the nature of which is similar to the American Community Bank. Good practices and learn from the American Community Bank and see its shortcomings, combined with China’s national conditions, local conditions, to the X bank business transformation to enlightenment. X banks on behalf of our small and medium commercial banks and other small banks have the same operating environment and comparative advantage, the same differences in management should take the road. This paper argues that small and medium commercial banks should play to their comparative advantage and make reasonable business restructuring its business development to achive considerable progress. Dislocation compare with large banks to find a suitable space for the survival and development, and made the following recommendations:first, philosophy transformation, build brand image and reputation; second, the profit model transformation and development of intermediary business; third, business transformation, to carry out different operations; fourth, organizational restructuring, the construction of flat organizational structure.