The Study On The Transformation Of Retail Banking Business Of Our Country

A few years ago, in the face of serious homogenization of competition, the bankingindustry began to differentiate the development of the first transition. And, most banks haveopted for a breakthrough in the retail business. After several years of propulsion, the retailbanking business is growing revenue accounting for the rapid increase. However, due toChina’s retail banking business is still followed the the epitaxial extensive development model,the profit contribution rate is not high outstanding problems that hinder its development. Inthe current regulatory capital adequacy ratio increasingly tightens situation, each bankfeasible deal with policy can only is to continue to deepen the transformation. Therefore, thestudy of China’s retail banking business transformation, it embarked on the quality andeffectiveness of both the intensive path of development, has a great practical significance forthe whole banking sector and even the financial system in China.This article takes the macro and micro analysis to the combined method of analysis.From the macroscopic perspective,the article researches the conditions and basis of thetransformation of retail banking business, and puts forward policy recommendations toimprove the financial system. From the microcosmic perspective, the article analyzes thesituations and problems of the retail banking business,and points out countermeasures ofenhancing the profitability of retail banking business.First of all，the article defines the retail banking business，points out it’s main customersinclude personal, family and small businesses; Then,it reviews the stages of development ofretail banking business in China and the development of main businesses,and divides theminto three types: traditional retail banking business, emerging retail banking business, andseed retail banking business. Secondly, through the analysis of three types of businessesdevelopment status and trends, the article points out that there are three reasons leading thelow profit contribution of retail banking business: the traditional business take up too muchresources, emerging business attach importance to scale-growth while ignorequality-improve,and seed business’ profitability points have not been excavated. Thirdly, by analyzing the market demands and other conditions, the article puts forward credit card,financial products, small business loans and private banking is the most important profit zoneof retail banking business. On this basis, the article point out the countermeasures oftransformation,which include transforming traditional business into resource-conserving,transforming emerging business from quantitative into qualitative, transforming seed businessinto high positioning. In addition, the article suggests to improve the financial system byestablishing a deposit insurance system, promoting interest rate liberalization, implementingfinancial mixed-operation system,improving credit management and credit guarantee system.