The Research On Operation Transformation Of Agricultural Bank Of China's Grassroots Under The New Normal

In recent years,due to the changes in the domestic and international economic and political environments,China's economic development has entered a period of "new normal" and has the following characteristics:(1)the economic growth slowed down from high-speed to medium-high-speed;(2)the economic structure was restructured and upgraded,and the tertiary industry has become the largest contributor to GDP;(3)the driving force of economic growth has changed,and the drivers of economic growth have shifted from the original factor-driven to innovation-driven.In the face of the "new normal" of the economy,China's commercial banks are also experiencing the impact of changes in the external environment,such as the deepening of financial reform,the increasing disintermediation of finance and the rapid development of Internet finance.Changes in the external environment make the operating pressure of commercial banks increase.The traditional business is challenged.The profit model is affected,and the competition presents a more intense pattern.In the increasingly fierce external competition,how to enhance its overall competitiveness has become the top priority of all commercial banks.Agricultural Bank of China M branch is a large state-controlled bank branch located in M City of Sichuan Province,which is the most basic branch organization.At the end of 2017,Agricultural Bank of China M branch has 78 physical outlets,of which 25 outlets are located in rural areas.In recent years,M branch of Agricultural Bank of China has been declining its business performance due to the changes in external business environment,rigid internal management and intensified horizontal competition.Correctly understanding the various problems of the operation,clearly grasping the internal and external competitive advantages and disadvantages and identifying the directions and routes for the transformation of the operation are necessary for the ABC branch to enhance its operational capability.This paper elaborates the background,purpose and path of ABC's grass-roots operation and transformation through the following five parts:The first part is the introduction.This part puts forward the background and significance of this paper,research ideas and methods.This paper firstly analyzes the new changes of the economic and financial environment in our country,and then studies the status quo of the grassroots ABC operation and the necessity of its transformation with the M branch of ABC as an example.It proposes the transition path and measures to provide reference for the transformation and development of the grassroots institutions of commercial banks.The research methods are literature research method,qualitative analysis method and comparative analysis method.The second part is the theoretical basis and literature review.This part includes domestic and foreign researches on the "new normal" of economy,researches on financial reform,researches on financial disintermediation,researches on Internet finance and banking transformation.The third part is the new situation of our country's commercial banks.First of all,this paper elaborates the causes of the "new normal" of our economy from both the international and the domestic aspects and points out the characteristics of the "new normal" of the economy.Then,it analyzes the current situation of financial reform,financial disintermediation and Internet finance in our country.Finally,this paper summarize the impact of the new economic situation on the business development of commercial banks in our country.The fourth part is the current situation of M branch of ABC and the necessity of transformation.Based on the analysis of the quantitative indicators such as the deposit and loan size and market share,net interest income,fee and commission income,profitability,employee age,per capita economic value added and intermediary business income of M branch of ABC in recent years,this paper summarizes the status quo and characteristics of the M branch of ABC and analyzes the problems that the bank faces in its operation.It also points out the necessity of operation transformation M branch of ABC.The fifth part is the transformation path and measures of M branch of ABC.This paper analyzes the competition environment of the bank by using the five forces model and the SWOT analysis method to study its internal strengths and weaknesses,external opportunities and threats and propose that the purpose of the transformation of ABC's M branches is to adapt to changes in the economic environment and competitive environment and enhance profitability and competitiveness.And the measures for the transformation of operation should be put forward from aspects of business philosophy,talent management,organizational structure,business innovation,risk management and control,performance management and channel construction.The branch of Agricultural Bank of China selected in this paper has direct competition with large state-controlled banks,joint-stock banks,postal savings banks,city commercial banks,rural credit cooperatives and rural commercial banks because of its large number of outlets and involving cities,counties and rural areas.Therefore,it is of great significance and practical significance to study the transformation path of M branch of ABC,which can provide some reference for the reform and transformation of grassroots institutions of various types of banks.