Research On The Development Strategy Of Changchun Rural Commercial Bank

China’s banking industry has stepped into a track of fast development since China initiated a policy of reform and opening-up,and joined the World Trade Organization.the function and capability of financial service economy has been improving continuously.At the same time,as the profound changes of the global economic and financial environment,as well as the subsequent information globalization which brought by the regional integration,globalization and the widespread of the Internet,international financial competition is growing;Domestic economic downturn is continuing and the spread on the bank is decreasing,interest rate liberalization and the deposit insurance system is being proceeded smoothly,and the domestic financial reform is also speeding up of the advance.The predecessor of Changchun Rural Commercial Bank was Changchun Joint Sales of Rural Credit Cooperatives,which changed into Changchun Rural Commercial Bank with a joint stock system in 2009.After more than seven years of development,the scale and strength of it has largely risen.Hence it won the title of "Top Ten of China’s Best Competitive Local Financial bank in 2014".Because of the profound internal and external circumstance,Changchun Rural Commercial Bank is faced with enormous uncertainties and unprecedented challenges.In late 2015,Changchun Rural Commercial Bank had more than 1000 branches.However,compared with some large banks such as ICBC,ABC,ICBC,CCB,CIB,and other joint-stock banks,Changchun Rural Commercial Bank has many weaknesses such as the small scale,weakness in technology and brand effect,and a character of operation homogeneity,which makes it very vulnerable in competition.At the beginning of its inception,Changchun Rural Commercial Bank formulated its development strategy based on the need of image promotion.But with the development of the new situation,and the current competition and challenges,a strategic target,which is more in accord with the actual and current situation,is putting on the schedule,in order to better deal with the competitions and challenges in the future.This paper is based on strategic management theory,as well as referring to some related books and papers about strategic management theory and practice.In this paper,through the concrete analysis of development condition,and the internal and external factors of Changchun Rural Commercial Bank,I analyze the existing problems,the cause of problems,opportunities and challenges it is faces with.This paper also studies the development strategy of this bank,in order to provide support and reference for the strategy formulation in the future.Since its inception,Changchun Rural Commercial Bank have developed a lot in total assets,deposit growth and loan growth,which means that it has certain ability to make profits,and the non-performing loan ratio is maintained at a relatively low level.However,due to the factor that it came from a rural credit cooperative,Changchun Rural Commercial Bank still has some weaknesses such as small scale,low coverage,weak technology,lack of accurate positioning in market and customers,as well as the domestic banking business homogeneity,which affect the further development of the bank.There are five types of problems.Firstly,its’ brand value is low and the it is not highly recognized by society;Second,the scale is too small to compete with other big banks in products and service;Third,it is at the early stage of development which has small volume and the anti-risk ability is not strong;Forth,the investment in science and technology is limited and difficult to form an technical advantage;Fifth,the development strategy should be further refined.On the basis of analyzing the strengths,weaknesses,opportunities and threats of Changchun Rural Commercial Bank,this paper provide some development strategies of establishing the bank in an innovative and technological way,mass effect,the introduction of strategic investors and cross-border development,differentiation and compliance steady,etc.Above all,I proposed to initiate the management transformation and enhance the overall service ability,emphasize the benefit from novel technology,strengthen the internal audit and compliance control as well as improve the risk management measures.Meanwhile,I would like to advance personnel mechanism and human recourse management.Pay attention to the incentive mechanism and concentrate efforts on the construction of cooperate culture.In a new circumstance,development strategy research has great practical significance to Changchun Rural Commercial Bank as well as many other small rural financial institutions and small Banks homogeneously.