The Study Of Development Model Of Pirvaet Banking In China

Our economy sustained and stable development, has brought a significant increase inwealth, especially with the continuous deepening of financial globalization and thecontinuous development of Chinese capital market, which make the number of affluentpeople has a massive growth, and the majority of customers and channel resourcesfoundation for Chinese commercial banks to develop private banking.Private banking provide personalized, financial products and financial services forhigh net worth population, it is different from the personal finance and wealth managementof traditional banking, It is mainly provide personalized service solutions for wealthyindividuals, such as wealth preservation, investment planning, company listed, family trusts,inheritance and so on, mainly highlights of the "tailored" feature of demand for the rich.Private banking of western countries have developed very sophisticated now, privatebanking of Western European countries has hundreds of years of history, and our country toget involved in private banking in2007. Because there is a big difference between Chinaand foreign countries in regulatory policy requirements, the laws and regulations, financialservices, customer and so on, so our private banking can not copy the model and experienceof foreign private banking business development, we need to build private banking whichmeets China’s national conditions, financial development and Our HNWIs.Bank of China launched the first which means China’s bank entered Private bankingbusiness formally, this “foreign goods” is already germinated in China. Compared with theWest Private Banking, our private banking business is still in its early stage of exploration.With the development of private banking in our country, Some problems emerged. Such as,private banking products offered serious homogeneity, organizational structure constructionis lagging, profitable way of private banking is not yet clear, private banking products andservices are urgently strengthen, lack of compound talents. Although we could draw on theexperience of foreign private banking business development, but there are big differencefrom foreign country in regulatory policy requirements, financial services and customerstructure. Which decides our private banking business can not copy foreign experience andmaturity model absolutely.Most literature about private banking are analyzing shortage in a view of macroperspective currently. In view of this, this article analysis the actual situation of developingprivate banking, find the problems of the development of private banking, and combinesuccessful experience of famous foreign private banks in organizational structure, servicemodel, profit model, risk management, exploring a suitable development path of China’sprivate banking and propose corresponding suggestions：Firstly, proposed strategy of “A matrix organizational structure as the ultimate goal” in the private banking structure,choosing different organizational structure in different stage. Secondly, raised theimportance of customer segmentation in service mode and profitable way. Thirdly, pursuedrisk management concepts and specific measures of monitor oriented.In this paper，the first part of this paper is some basic theoretical knowledge, whichmake us have a comprehensive understanding in the concept, characteristics, origin anddevelopment of private banking. The second part is the core part, descripted and analysedthe conditions of private banking business. From the point of view of private bankingoperations processes, organizational structure, service delivery, profitability and riskmanagement plays a big role to the development model of private banking, so, this paperanalyzes development model of private banking from these four aspects. The third partanalyzed the current situation and the problems of the development of Chinese commercialbanks in the private banking business. The forth part is based on the second portion and thethird portion, select four representative private banks in the global,(credit Suisse PrivateBank, EFG International Bank, Singapore Private Banking and HSBC PrivateBank),Propose and analyze success stories, which make reference for China’s privatebanking development. The fifth part is the proposals and measures for the development ofChina’s private banks raised against the four aspects.