Research On The Actuality And Strategies For Business Scale Expansion Of Urban Commercial Banks

In the middle of 1990 s,the Chinese government has carried out a series of restructuring and consolidation of urban commercial banks in the middle of the city.Therefore,the urban commercial bank is a form of bank created under the special historical conditions in China by the central government to resolve the local financial risks of the product.In June 22,1995,China's first urban commercial bank,Shenzhen Urban Commercial Bank(now renamed Ping An Bank)was formally established.Up to now,the 134 urban commercial banks have been set up around the big,medium and small cities in China,which are always providing convenient,fast,and high quality service for the thousands of Chinese people.In this paper,the horizontal expansion of the overall coverage of urban commercial banks has been deeply studied,and several constructive suggestions and opinions for the business scale expansion of China's urban commercial banks have been provided accordingly.The primary research contents and achievements of the thesis are as follows:(1)The fundamental theories of business expansion in the aspects of definitions,ways,principles and risks have been introduced.In the aspect of risks of business expansion,major precautions should be taken against strategic risk and financial risk.(2)Actuality,motivations and directions of business scale expansion of Chinese urban commercial banks have been represented.First,an urban commercial bank has been defined,then the macro and micro environments around urban commercial banks have been analyzed.Second,the historical courses,actuality and characteristics of Chinese urban commercial banks have been summarized,and the motivations of their business scale expansion have been given.Moreover,in the aspect of business scale expansion directions,five directions which contains isolated ATM,community bank,internet finance,rural bank and wealth management company have been proposed and described.(3)The four major problems existing in the business scale expansion of Chinese urban commercial banks have been expatiated,which consists of limitations of expansion,organization management,cost control,strategic and executive problems.(4)To face current problems and risks existing in the business scale expansion of Chinese urban commercial banks,reasonable and feasible countermeasures have been proposed,in order to provide support for decision making in the process of the business scale expansion of Chinese urban commercial banks,reduce the financial risks,and finally improve the service quality and overall efficiency of Chinese urban commercial banks.