The Case Study On The Corner Overtaking Of China Merchants Bank

As China entered into the World Trade Organization, it has opened its financial markets, and a large number of foreign banks come into China, it made China’s banking industry in a very competitive environment. In this case, the bank regulation became more and more seriously. The internet appeared,the financial environment changed,which brought unprecedented pressure to the banks. To face these challenges, China created a new development strategy,and in general,we maintained a healthy and healthy development trend. Based on the relevant data of China’s commercial banks, we found that in 2011 to 2015, the increase of the state-owned banks’ total assets declined year by year. In the first half of 2010, the increase of the state-owned banks’ assets was 42.96%,but in 2015, this data became 11%. In 2010, the increase of the operating income was about 30%. But in 2015, this data became less than 10%.However, in the case of the whole banking industry’s increase in decline, China Merchants Bank’s increase in operating income has increased. We should take more attention that,the size of China Merchants Bank assets accounted for only 70% of Bank of Communications,But its operating income is 7.6 billion more than the Bank of Communications. There is a phenomenon of corner overtaking, and the rapid growth of non-interest income is one of the reasons for this phenomenon. This paper analyzed the phenomenon of overtaking corner of China Merchants Bank. The first part is the case introduction. Firstly, we introduced the general situation of China Merchants Bank. Next, we described the development status and structure of non-interest business of China Merchants Bank.Finally, we introduced the development process of the overtaking corner of China Merchants Bank. The second part is the case analysis. First of all, We analyzed the causes of the corner overtaking of China Merchants Bank, and points out that one of the important reasons for the increase of China Merchants Bank’s corner overtaking is the rapid growth of non-interest income of China Merchants Bank. Then we compared the China Merchants Banks’ scale and the structure of non-interest income with other commercial banks and we also explored the impact of non-interest business on bank performance, Finally, We analyzed the existing problems of non-interest business of China Merchants Bank. The third part is the conclusion and suggestion, aiming at the non-interest business of China Merchants Bank, We proposed the corresponding countermeasures and suggestions.