Research On Private Banking In Domestic Commercial Banks

2007is known as the first year for private banking in domestic commercial banks. From2007, various banks have set up private banking institutions, snatching private banking business. In the early days of the development of domestic private banking, foreign private banking has also entered China, seizing domestic market. Domestic institution of Citi Private Bank was established in March2006; Standard Chartered’s was established in June2007. Foreign private banking has a long history and global service system. But since the2008financial crisis has a negative impact on the brand along with regulatory constraints, cultural differences, being apparently unaccustomed, their advantages are difficult to be shown in a short term. In this case, the industry generally believes that private banking in domestic Chinese commercial banks has about two-year-long window of opportunity. Now, after six years, private banking in Chinese commercial banks still has not seized opportunities. Neither have they found their own way of development. The issues of development situation are attached much attention.This article firstly briefly stated the origin, definition, characteristics, standard, service model and profit model of foreign private banking. Secondly, it focused on analyzing the current development conditions of private banking in domestic Chinese commercial banks from several aspects, such as number of customers, customers’asset size, number of private banking centers, management model and earnings of private banking in Chinese commercial banks at present. And it discussed the potential causes which may influence and restrict the sustainable development of private banking in domestic Chinese commercial banks. Lastly, this article comprehensively interpreted the wealth market potential of domestic private banking through analyzing regional distribution, age structure, profession characteristics and demand-changing features of high-net-worth population in Chinese private banks at present.Taking private banking in China Merchants Bank as a real case, I deeply, systematically analyzed the leading reason of its development of private banking. Through analysis, on the one hand, it can reflect the development of Chinese commercial banks’private banking of which China Merchants Bank is a representative; On the other hand, successful experience can be replicated, the SWOT analysis on China Merchants Bank’s private banking shows its success of development strategy. It is conducive to other domestic commercial banks learning from its experience.Finally, I put forward some countermeasures on five aspects based upon the analysis above in order to solve the problems appeared on the management level in Chinese commercial banks’private banking.