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Research on the Commercial Bank’s Investment Banking Business Development Strategy

On 20/09/2013, in Finance, by rain

There are more difference between Commercial banking and investment bankingbusiness.The traditional commercial banking business is mainly about Deposits, loans,settlement business in the indirect financing market. Investment banking business.is relevantto all securities, funds, bonds in the capital market.” separate operation, separatesupervision” of the financial system is executed in our country. Commercial banks todevelop investment banking business is prohibited.Since the reform and opening up, our country has achieved rapid economic growth. Thestate-owned commercial banks have made many contributions. In the impact of external andinternal pressure of the dual challenge of surviving,the Chinese Commercial Banks mustneed Continuous innovation. At the national laws and policies to allow the premise, thedevelopment of investment banking is an inevitable choice.The topic of state-owned commercial bank’s investment banking business developmentstrategy mode is researched by the systemic studies. The analysis of organization form,product form as well as in business organizations, products and its supporting system hasbeen done on the basis of the analysis of commercial banks business developmentframework characteristics. In the interactive development and resource integration under theguidance of thought, Bank A has done a lot of investment banking business about Financialadvisers, Syndicated loans, Mergers and acquisitions, asset securitization and so on. There isa certain referential significance in the current market situation of the commercial bank’sinvestment banking business development.

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The Research on the Problem and Countermeasures of Small&Micro-enterprises Financing

On 20/09/2013, in Finance, by rain

Small&micro-enterprises(MSE) played a huge role in promoting the process ofChina’s economic development,it is an important part of economy in china. Small&micro-enterprises’s development will promote employment, economic growth, socialstability, and technological innovation better too. However, there are serious problemwith financing for them, An important driving force is adequate and effective supplyof funds, so sloving these problems will make the development better and faster.With economic development and social progress, the financing problems ofenterprises, especially small&micro-enterprises, will be paid close attention bycommunity more and more. People’s Bank forum has held in August2011, this forumclearly put forward the depth of the credit structure optimization, and enhancedfinancial institutions, especially support more money for small&micro-enterprises,we must take measures to promote the cooperation between commercial banks andsmall micro-enterprises. All measures are maked to solve the the financing problemsof small&micro-enterprises.In this paper, The main research is the financial relationship between commercialbanks and small&micro-enterprises. The first part of the paper is financingbackground, research significance, research purposes of small&micro-enterprises,then is the basic theory of small&micro-enterprises, commercial banks and the basictheory of financing. The next part is present situation of small&micro-enterprisesfinancing, Financial services of commercial bank and the background of commercialbank would not like to give financial support for small&micro-enterprises. Then isthe part of the Game between small&micro-enterprises and commercial bank, theGame have Static Game and Dynamic Game between small&micro-enterprises andcommercial bank, and the Game about small&micro-enterprises, commercial bank and government. We can Through the game analysis to find out the various statesabout equilibrium, and it is the foundation about the countermeasure and proposal ofsmall&micro-enterprises financing. In the fifth chapter, we pose a lot ofcountermeasures and proposals.

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Study on the Relationship between Commercial Bank of Technological Innovation and Customer Satisfaction

On 19/09/2013, in Management, by rain

With the continuous development of financial products and services and the increasing maturity of information technology, the commercial bank in the products, services, processes and distribution channels and other aspects of technical innovation constantly, how to strengthen the innovation practice in order to achieve maximum customer satisfaction, has become a major bank issues of common concern. On the basis of market segmentation, to understand the business bank of technical innovation and the relationship between client satisfaction, is the bank building the core competitiveness of the important foundation. Therefore, the Commercial Bank of technology innovation and customer satisfaction, the relationship between the technological innovation to meet customer demand has caused the author’s research interests. In this paper, the combination of theory and practice from the perspective of commercial banks, and the study of technology innovation and customer satisfaction relationship, so as to commercial banks through technological innovation to improve customer satisfaction and provide a theoretical reference.Combined with the research subject, this thesis chapter is structured as follows:The first chapter:Introduction. This paper describes the research background, significance and the problems to be solved, then introduces the research content, method, framework, technical route and main innovative points.The second chapter:Literature review and commentary. Through the research of domestic and foreign technology innovation theory and the classification standards, defined on the Bank of technology innovation research scope and classification; at the same time, through the technology innovation and customer satisfaction related literature review, analysis and induction, this paper adopts the technical innovation measurement methods, measurement variables and measurement of customer satisfaction evaluation index system finally, on the basis of banks; customer satisfaction index system design principles, determining weight quantification. The third chapter:Conceptual model and research hypothesis set. Based on the theory and literature review of the establishment of this research, conceptual model, and the conceptual model in reference to the related variables were explained and decompositon, puts forward an empirical study need to be conducted to validate the hypothesis of the study.The fourth chapter:Study design and hypothesis testing. The study design was based on a conceptual model and research hypothesis based on this study, designed to illustrate the sample screening modalities, including sample bank research variable scope and definition; at the same time introduces the research data sources, and collect statistics of the questionnaire results, the sample data, the overall situation on the basis of the analysis, by the method of factor analysis to establish business customer satisfaction index system. Application of validity and descriptive statistical analysis, correlation analysis of technological innovation to customer satisfaction influence; finally validates the research hypothesis, empirical research conclusions drawn.The fifth chapter:Suggestions and prospects. The first of this study do integral explain, and summarizes the commercial bank how to enhance the innovation practice in order to achieve maximum customer satisfaction of the suggestions; then proposed the research limitations, can expand the scope of the study and future research directions in the field.

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A Study on the Threshold Competency Model for Inancial Manager of Commercial Bank in China

On 19/09/2013, in Management, by rain

With the rapid development of personal financing business of commercial bank,finance manager system was taken into consideration gradually in business management.So that, more and more commercial banks adopted the finance manager system becauseit’s good for the refined management of banks business. Therefore, it’s necessary to buildan accuracy competency model of commercial banks’ finance manager.Based on work content analysis and literature analysis, this paper combinedqualitative methods (e.g. behavioral event interview, BEI) and quantitative approach(e.g. questionnaire survey) to explore the competency model of the finance managers incommercial bank of china. After that, we developed a scale about finance managers’competency model of commercial bank. Finally, we found some valuable conclusionsbased on the result of depths interviews and data analysis:(1)The constructed competency model of financing managers includes five factors:achievement motivation, interpersonal skill, career quotient, personality, thinking andinnovation. Firstly, the achievement motivation own goal pursuit, product identity, workidentity, achievement motive, achievement orientation and reward expectation. Secondly,the interpersonal skill includes conversation guide, outgoing, team cooperation,communication skill, the ability of public relations, the ability to set up and maintain therelationship, interpersonal understanding, interpersonal cooperation, and influence. Thirdly,the career quotient own information gathering, customer oriented, customer judgment, theability of planning and implementation, resource integration, professional knowledge andskills, commercial sensitivity, market orientation, learning and innovation. Fourthly, thepersonality contains emotional regulation, confidence, openness to experience,professional dedication, persistence, responsibility, optimistic, thinking and innovation,initiative. Finally, the thinking and innovation includes logical thinking, flexibility,learning and summarizing, decisiveness, innovation consciousness, ability to solveproblems, strain capacity. Among the rest, achievement motivation, goal pursuit, the abilityof public relations, customer judgment, openness to experience, professional dedication,persistence, flexibility, strain capacity are differentiating competences. (2)We developed a scale about finance managers’ competency. And then, based onthe systematic analysis(e.g. discrimination analysis, exploratory factor analysis, reliabilityand validity analysis, and the confirmatory factor analysis), we demonstrated a five factorscompetency model of financing managers which contains achievement motivation,interpersonal skill, career quotient, personality, thinking and innovation. And there are fourto five items in each factor. The Cronbach Alpha coefficient of each factor is0.812,0.823,0.786,0.775,0.701, and the Cronbach Alpha coefficient of the scale is0.874. In addition,we found there was good construct validity of the scale.(3)On the basis of the findings, we propose some effective practice managementstrategy, and we discuss the shortage and future directions of this research.

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The Study on Development of Individual Financing Business of China Commercial Bank

On 19/09/2013, in Finance, by rain

In the financial industry opening up in the context of commercial banks, to win marketopportunities, strengthen the competitive advantage, timely introduced a number of personal financialproducts. After2006, with the global stock market, commodity market” bull market” the market the furtherevolution, the banks have launched with the stock, index, commodity prices and other targets linked tofinancial products. Especially some foreign banks, based on its business integrated, interdisciplinary featureand rich experience in overseas investment and talent advantages, is more personal financial products as themain varieties of financial business. In2007, the domestic bank personal financial products from theproduct quantity, participating institutions, groups of investors and other aspects, there are more rapidgrowth. But on the whole, the personal financial product market development is still not out of infancy.First of all, our country still has not formed a complete personal financial product system, product serviceobject standard single. Secondly, domestic commercial banks in financial products marketing operationindeed exists the shortage of talent, propaganda way of simple and extensive customer classification statusmachine. Once again, the commercial bank internal institutions coordination is not smooth, low efficiency.Finally, the domestic investors’ lack of understanding of financial products. The combination ofCommercial Bank of developed country advanced experience, think our country commercial bankindividual financing business development should be: first, should improve their own product design andmanagement ability, achieve financial products and professional management. Second, increase financialproduct publicity, expanding its own brand awareness. Third, coordination of commercial bank’s internaldepartments, form cooperate each other and efficient personal financing service system. Fourth, improvethe regulatory system, promote the orderly and healthy development of personal financial business. In fifth,the ongoing personal financial business innovation, keeping its vitality in the development of. Sixth, helpthe investors to finance knowledge, establish a healthy investment philosophy.

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The Research on Performance of Commercial Banks Based on EVA

On 19/09/2013, in Finance, by rain

In recent years, with the development of financial innovation, the world economic integration and the financial globalization, the global banking are experiencing tremendous changes. The banks of various countries are facing increasingly fierce competition. At the same time, along with the reform of China’s financial system, the commercialize degree of Chinese economy rise ceaselessly. The internal and external environment of China’s banking business is undergoing tremendous changes. These derived from regulatory requirements, competition, financial innovation and internal management lag challenge, forcing the Chinese commercial banks to consider how to achieve their value added business objectives.Economic value added is the net profit after subtracting all the capital cost. It considers not only the cost of debt capital, but also the cost of equity capital, so it makes the final result really reflect the operating results of the enterprise.This paper introduces the EVA method and discusses the calculation model. Then the EVA performance valuation of the16listed banks during the year2005and the2010are calculated. It shows that the operating performance of commercial banks is not optimistic, and the value of shareholder is damaged in different degrees when the capital cost is considered. The aim of this paper is not only to calculate EVA and EVA returns, but also to analyze the basic factors that drive the EVA of the bank, so we can make the corresponding countermeasure to improve the bank performance. The paper chooses the factors through the macro environment, industry level and internal environment. The results show that, there are six main factors influence the REV A, such as the tax burden, capital, risk management and business structure. Then, some corresponding suggestions are proposed:Commercial banks should promote EVA management concept, build up the operation and performance evaluation system based on the EVA theory. It should be useful to provide valuable reference for business strategy formulation and strategic decision-making.

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The Research on the Risk Prevention of Logistics Finance Business for Commercial Bank in China

On 19/09/2013, in Finance, by rain

With the development of the logistics industry,logistics and finance demands and effectseach other. The logistics finance business continues to grow and develop, it is becoming a majorbank competing new business field. With the rapid development of logistics finance business incommercial bank by driven profit, the logistics finance risk understanding is far insufficient andthe management of risk prevention is relatively backward. The logistics finance in our country isstill at the initial stage, as a kind of financial innovation, commercial bank is facing the new riskin the process of the development, requires a high degree of awareness of risk, makes a positiveresponse and strengthens the risk prevention.Firstly, the paper explains the general theory of the logistics finance business in commercialbank and risk prevention. Secondly, discusses of risk performance and characteristics forlogistics finance in commercial bank. Further, focuses on the analysis of reasons for logisticsfinancial business risks and risk prevention problems at the present stage. The paper thinks manymain problems of the logistics finance business in commercial bank: risk prevention of physicalexisted defects, failed to establish a risk prevention mechanism, risk prevention of the low levelof technology, risk concept and culture had not been achieved the requirements of the rapiddevelopment of business and risk prevention methods. Lastly, the paper draws lessons from maindeveloped countries the successful experience of risk prevention for logistics financial business,points out countermeasures and suggestions to strengthen the risk prevention of logistics financebusiness for commercial bank in our country, they have mainly five aspects: with a variety ofmethods to make up for the lack of law, introduction of credit self-liquidating technology toreduce the credit risk, from personnel, processes, systems aspects of prevention operational risk,build information technology platform for information sharing, and, establish the risk earlywarning mechanism.

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Commercial Bank Credit Risk Identification and Assessment

On 17/09/2013, in Finance, by rain

In the background of rapid development of economic globalization and in-depth concept of supply chain management, the financial model of chain-supplying is created by the integration of finance and chain-supplying. In the 1990s, the chain-supplying finance was making into practice for the first time, however, this financial model developed much later in China:it started in the early 21st century. The main financial participant of the supply chain finance includes the following parts:the commercial bank, the SMEs and the core enterprises, with the creation and the development of the supply chain, its development not only play a positive role in solving the financial problem of SMEs, but also provide some opportunities for the commercial banks, what is more, it also bring some positive influence in improving capital efficiency for the core enterprises.In the past few years, the commercial bank assessed the SMEs according to collect the main information of SMEs, to analyze of financial data and to pay some attention to the collateral material, etc, moreover, the chain supplying financial model tries to seek a new way to assess the credit crisis of SMEs, to treat the core enterprises in the supply chain-financing model as the main part which needed to be assessed, more important, the stability of whole supply chain are also considered as the related factors. This article research the credit crisis assessment of the commercial bank to small and medium-sized finance corporate. The author pays much attention to find a reasonable way and system of credit crisis assessment of supply-chain financing small and media enterprises according to emphasis the following four aspects:the definition of the supply-chain financing, the recognizing of the supply-chain financing credit crisis, the establishment of the supply-chain financial credit crisis assessment system and the comparative analysis, and to adopt the method of analytic hierarchy efficacy coefficient, and to assess the credit crisis of the traditional financing model. Therefore, some theory supports in terms of supply-chain financing business are provided, in order to cause the business of commercial banks in China operate more reasonable and efficiency.This essay are divided into six chapters:the first chapter described the main background and the practical significance of this article, some domestic and foreign literature review in this essay are outlined following by, at the end of this chapter, some context and concept of this essay are introduced. Theory analysis are the key point in chapter two, in this chapter, the recognition of credit risk and the relevant theory about assessment are elaborated respectively, what was following by was the relevant theory analysis as to the supply-chain financing in four aspects:the definition ans development about the supply-chain financing, the main elements of supply-chain financing, the model of supply-chain financing and the influence of supply-chain financing. The analysis of how to recognize the financial credit crisis of supply-chain are the core element of chapter three, in this chapter, the explanation of supply-chain financing mode are outlined in three points respectively:receivable mode, inventories pledged mode, prepaid receivables mode. The data of chapter four are based on the third chapter to establish rational assessment target system of business financial credit crisis. The fifth chapter indicated some empirical data, first of all, the meaning of different indicator are determined according the analytic hierarchy, secondly, data analysis, which combine the quantitative and qualitative figure analysis, of Hai Tong Machinery Co., Ltd. Chongqing, are shown through two reasonable ways.In the mode of supply chain financial score significantly higher than the traditional financial model score. It can be seen that SMEs themselves comprehensive ability and the general credit situation are not good enough, but if from the perspective of supply chain finance to assessment.it can improve their credit status and credit rating can be raised rely on the core enterprise,achieve the bank’s direct credit conditions. The last chapter: chapter six concluded the whole paper and gave an outlook as well.

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The Empirical Study of Individual Housing Loan Credit Risk

On 15/09/2013, in Finance, by rain

Personal housing loan is a high-quality asset. It is a effective method that adjust the credit quality of the bank. With the rapid development of real estate industry and the rapidly number of individual housing loan, the credit risk exposed gradually. The U.S. subprime mortgage crisis destroyed financial markets. If personal housing loan credit risk accumulated to a certain degree, the outbreak will trigger a domino type chain reaction and finally harm economic security. Analysis individual housing loan default influence factors and improve the credit risk management method is helpful for Banks to increase the safety of credit assets.This article makes empirical research on the individual housing loan credit risk according to the individual housing loan data of the commercial bank in Xi’an from 2005 to 2008 based on the summary of the individual housing loan credit risk research results and related theory which made by domestic and foreign scholars. Firstly, this article analyses the affecting factors of individual housing loan default risk and makes the variance analysis on the selected indexes. This article describes the distribution of the breach and each index through the statistical analysis of the sample data. Secondly, this article carries on the forecast of the individual housing loan credit risk with the application of the proximal support vector machine (PSVM) and proves the practicality and applicability in the prediction of individual housing loan credit risk by constructing a test matrix and attribute matrix and the model test. Finally, proximal support vector machine is evaluated and made model analysis and error analysis limitations, and the suggestions for improvement are put forward.This article draws the following conclusion through the analysis on large amounts of real and effective personal housing loan data:The accuracy rate which predicts whether a personal housing loan borrower breaches by proximal support vector machine is 85.6%, high accuracy and the first kind of the error rate is low. Proximal support vector machine is more rapid and accurate in dealing with a large sample problem than logistic model. Through the evaluation and test on model, this article suggests that proximal support vector machine can give forecast on individual housing loan credit risk.

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The Foreign Exchange Exposure of Chinese Listed Banks

On 14/09/2013, in Finance, by rain

For China’s banking sector, the growing internationalization of Chinese banks in boththeir fundraising activities and banking businesses and the lack of financialinstruments available in the local market for Chinese banks to hedge their foreignexchange risk, together with the structural change in China’s exchange rate regime inJuly2005, may suggest that Chinese banks in general have become increasinglyexposed to foreign exchange risk. At the same time, the trend of financialglobalization and blended banking system force executives step up efforts to establishmore and more overseas’ branches. Given this situation, a comprehensive empiricalstudy on the foreign exchange exposure of Chinese banks could provide usefulinsights for both exchange rate and banking policies in China.After summarizing the research literature of home and abroad, this paper firstqualitatively analysis the definition and classification of foreign exchange exposure,and emphatically introduce two kinds of main methods of quantitative analysis: CashFlow Approach and Capital Market Approach. Respectively, we use the capital marketapproach and the equity price data of16listed Chinese banks in the Chinese stockmarket, and the cash flow approach and the operating income data of14listedChinese banks in the Chinese stock market, using Panel Data Model, considering lagfactors, to measure the foreign exchange exposure of Chinese banking industry inquantitative way.Empirical evidence suggests that the listed Chinese banks are generally exposure toforeign exchange risk when considering the lag effects, not matter using the capitalmarket approach or using the cash flow approach. The result also suggests that thefluctuation of different bilateral exchange rates has different influence on the value oflisted Chinese banks. Together with the fact that decreases in equity values generallyimply a higher default risk, the effects of different scenarios of RMB appreciation onthe default risk of Chinese banks should therefore be closely monitored. At the sametime, this paper also found out that the empirical result obtained from Cash FlowApproach accord closer with the practical situation.