Case Study Of Cross-regional Business By Bank Of Fuxin

With the accomplishment of the commercial banks’ reform, as China’s third-tiercity commercial banks turn into the aim of banking reform in the new stage. Thenegative effects of urban commercial banks operating mode single city system hasbecome increasingly obvious, and gradually become a barrier to development of citycommercial banks. There are advantages and disadvantages in the process ofcross-regional business for city commercial banks. Attracting City commercial banksregional expansion includes the following: Increasing the brand influence; seeking forthe greater market and more opportunities, and continuing to improve their owncapacity for development in fierce market competition; Evading regional risk. But at thesame time, cross-regional business has some problems, such asdeficiencies in their management which caused by management chain lengthened andunclear marketing positioning due to blind expansion. With the cross-regional capitalflows more frequent, corporate customers’ demands for commercial banking productsand services are also increasingly diversified. In this case, Bank of Fuxin chooses thecross-regional development which would be a good basic for their sustainabledevelopment.Fuxin, as the nation’s first urban economic restructuring of resource depletion pilotcity which determined by the State Council in recent years, although offered a series ofpolicies to support its economic growth, and it worked, but the overall economicenvironment still needs to be further developed. Bank of Fuxin has experienced over tenyears of hard exploration and transition in Fuxin area, it has grown into the largestmodern local bank from a local commercial bank finally. After many years of rapiddevelopment, while increasing the asset scale， customer accumulation also increasing,but Bank of Fuxin still faces some problems, such as various regional risk, expandingits influence and its own development needs, so the cross-regional businessdevelopment is an inevitable choice for Bank of Fuxin. But a city commercial bankscame from a city that the economy is relatively under-developed to large cities such asShenyang, Dalian, facing competition from a large number of financial institutions andcommercial outlets, it is not an easy thing to hold its ground in that field. However, with the fighting spirit and good working order of the staff of Bank of Fuxin, they finallyhave got good outcome in many aspects.In this paper, I will combine the development process of cross-regional commercialbanks in China’s urban and the characteristics of the city commercial bank, to analyzethe necessity of Bank of Fuxin cross-regional management. Through the analysis ofseveral modes of trans-regional management, I will explain which mode Bank of Fuxinchose.This article is broadly divided into six parts. The first part is an introduction,including background, significance, literature review and writing Ideas. The second partintroduces the process of cross-regional business of Bank of Fuxin. The third sectionprovides a brief analysis of cross-regional business of Bank of Fuxin according to thedevelopment of China’s commercial banks, and summarizes its pros and cons ofcross-regional operations. In the fourth part I will analyze the Bank of Fuxin’s motive ofcross-regional business and its business model of cross-regional business. Since theestablishment of branches across the region, we are facing the different environment,also lost many advantages, the fifth part focuses on the problems that exposed in theprocess of cross-regional business. Finally, these issues were summarized and analyzed,and in order to promote Bank of Fuxin better developing, there will be given someworkable relevant suggestions.