The Problems And Countermeasures Of The Transformation Of City Commercial Banks

Since the Financial Crisis in2008, the international economic structure has changed significantly. The whole world is under depressed and high unemployment. And the international financial market is more complex. Because of the impact of the Financial Crisis, most countries and region’s development is slowing down. The European debt crisis becomes worse and spreads gradually, and the risk of the euro increases. All of these make the global financial market more unstable. The economic situation in China is not very optimistic. There are many problems of the development of the financial industry in China, such as the huge pressure of RMB’s appreciate, trade protectionism, the challenges of export, the depression of the stock market and real estate market, high inflation, the rising of consumer protection, and so on. In recent years, financial institutions in China have done many irrational things in order to seize the market, which have a lot of hidden dangers. And recently, the people’s bank of China is speeding up the market process of interest rate. And foreign banks, with its professional management, have also accelerated the pace to seize the financial market in China. The needs of consumption and. wealth management are rising, which make the banks to provide more services. Traditional banking is no longer suitable to meet the growing demand of consumers. Providing various services will become the trend of the development of the banking sector. The rapid development of China’s city commercial banks, which has experienced more than10years, has made outstanding contributions to China’s economy, especially the development of the local economy. However, in recent years, due to the management style, operating system, geographical restrictions and a series of reasons, the problems of city commercial banks can not be ignored. And at the same time as market competition intensifies, the banking industry which is in a monopoly position is facing a huge impact. As the five-year buffer period of WTO has ended, foreign banks will enter China quickly. In this case, the development of city commercial banks is even more difficult, and the traditional method of development is not suitable, the transition becoming more and more urgent. The transformation becomes the only way for the development of city commercial banks. In this paper, I use the five forces model and SWOT analysis to analyze the transformation of the city commercial banks, and then three typical commercial banks are selected for analysis; one of them is the Bank of Nanjing, which is successfully listed. And the other one is the Bank of Chengdu, which is the largest city commercial bank of southwestern China. And the last one is The Tomato Bank of Japan. At last I give some countermeasures for the transformation of the city commercial banks.