Study On Development Prospects And Strategies Of Community Banks In China

After long-term development, current community banks in USA have formed mature operation models and played an irreplaceable role during the course of economic development. But in China, with the advancement of interest rate liberalization and rapid growth of mobile Internet finance, banking faces huge pressure, especially for local small and medium-sized financial institutions which have trouble in the blockage of financing channels, deposit outflows, rapid increasing of operating cost and similar products and services. Some financial institutions are likely to be purchased or go bankrupt. In future, the management of local small and medium-sized financial institutions should study hard and focus on deciding reasonable market orientation and scientific development model, drawing up a development strategy fit for their own conditions to make themselves develop well. The author thinks that it is the best way for the local financial institutions to introduce the advanced model of American community banks into our country, which is combined with the domestic market characteristics and their own features, and then make it transformed to be suitable for our specific situation. It is related not only to the quick development of our national economy but also the fates of so many financial employees, which has great realistic significance.Firstly, this paper generally introduces the development of American community banks and analyses the external guarantee and the intrinsic advantages of their success. It then focuses on analyzing the case of the most typical USA community bank Wells Fargo. Next, it explains the necessity of China’s small and medium-sized financial institutions’ transition to community banks, presents not only the developmental status of community banks in China but also the development prospects and strategies. Finally, the author elaborates the exploration and practice of Zhejiang Rural Credit Union, including showing the practice of its transition to community banks from four aspects and revealing some problems existing in the process of practice. Combining with the actual situation, the author puts forward six strategies which promote the development of community banks of Zhejiang Rural Credit Union, including the key measures of strengthening financial innovation and improving customers’ service system, and hopes that other banks can learn from these methods and measures in their process of transition to community banks in the future to take various effective strategies to ensure the smooth transition.The innovation of this paper is that combining the new situation of intensified competition between current banks, which suggests that the local small and medium-sized financial institutions should develop its community banks, that is to say, the research contents of this paper keep pace with the times and suitable for the actual situation of present banking industry. Moreover, the author takes Zhejiang Rural Credit Union as an example, which is different from the fact that former experts tend to take China’s large commercial banks and shareholding commercial banks as examples to study. It shows that the research object of this paper has innovativeness and representative significance.