A Case Study On The Divisional System Reform Of China Minsheng Bank (CMBC)

In the past decade, with the rapid development of marketization of interest rates and internet finance, the competition of Chinese banking industry has become more and more intense. Meanwhile, the benefit of banking industry has gradually declined. The development of small and medium commercial banks, in particular, has become more and more difficult. Ensuring the sustainable development of banking industry and enhancing its performance have become an urgent problem for small and medium-sized banks in the face of the constant challenges from large foreign banks and large state-owned banks. Therefore, many small and medium-sized commercial banks in C hina began to conduct studies on the direction and methods of reforms and embrace changes to promote development. And the reform of the business unit structure is one part of the reforms.This paper mainly studies the reform of C hina Minsheng Bank. The first part of this paper analyzes the business system reform of C hina Minsheng Bank with C hinese characteristics with the study on the theories of domestic and foreign business unit system concerning the special conditions of C hina's financial industry,. However, divisional system is not a perfect form of organization with both advantages and disadvantages. Based on the general situation of China Minsheng Bank, this paper focuses on the situation of China Minsheng Bank before the reform of divisional system and the results achieved after the reform and its contribution to the industry. After that, it analyzes the problems existing in the reform of divisional system, puts forward some optimization strategies for addressing some problems, and finally draws experience from the reform. The trends for divisional system reform in C hina include balancing the interest relations of different departments, establishing risk control systems and managing performance scientifically and effectively, which could serve as guidance for other domestic banks...