The Research On The Development Mode Of China Everbright Bank Changsha Branch Community Bank

ABSTRACT:Community banks first developed in2006in our country. Community bank became the fifth bank, after the policy bank, state-owned commercial bank, joint-stock commercial bank and foreign capital bank, and it has become an integral part of China’s banking system. In2012, many commercial banks in Hunan Province turned their focus of retail business on developing community bank. China Minsheng Bank, Shanghai Pudong Development Bank and China Industrial Bank have speed up their progress for seizing high-quality community resources. With the fierce competition of China’s banking industry and thriving economy of the communities, the demand for community finance is getting bigger. Under these circumstances, as a modest joint-stock commercial bank, it is essential for Everbright Bank to accelerate its progress of community financial business, for laying a solid customer base in Hunan province in the future.Therefore, this paper takes the Everbright Bank Changsha branch community bank as the research object, discussing and exploring the development mode for community banks, and to provide reference and research results for the enterprise. The paper first reviewed the theoretical research results and directions of community bank between domestic and foreign scholars and introduced American and domestic scholars’ definition of community bank based on the fundamental theory of community bank. The paper concluded five basic character of community bank, such as small scale and single form of organization, characteristic services and low service fee, fully information disclosure and so on. In the meantime, this paper elaborated two basic theories of community bank, which are Theory of Financial Symbiosis and Theory of Property Rights System, and extracted experiences and revelations through analysising development modes of America, Austrilia and Japan’s community bank.This paper took in-depth analyzes on China Everbright Bank Changsha branch for its business on developing community banks in Hunan Province, and put forward two advantages for China Everbright Bank. First, it has established a clear development plan and goal. Second, it has competitive supporting hardware and software facilities. On the other hand, it also has some disadvantages. First is that the operation and management of community bank are immature. Second is that further supplement of human resource is acquired. Through environment analysis, this paper elaborated development strategy for China Everbright Bank Changsha branch community bank in following three aspects:first, related requirements of developing comminty banks; second, site selection planning and requirements, and operational service system; third, operational accounting design and risk control.Meanwhile, this paper also designed an operational mode for China Everbright Bank Changsha branch community bank, including the following four aspects:main operational organization structure, main operation business and services, maketing planning and marketing implementation mode, and control targets of input and profit. The paper also put up corresponding supporting measures:first, establish policy guarantee through following four ways, which are set up deposit insurance policies, improve relevant support policies and law construction, propel development of credit system and establish and improve self-regulatory organization; second, establish internal guarantee through following four ways, which are establish and improve internal control measures and enterprise governance structure, strengthen risk prevention senses, cultivate and develop professionals and specialists, and breed advanced corporate culture.