2012 China Banking Industry - Top ten trends and outlook(5)

2012 China Banking Industry - Top ten trends and outlook

the loan-to-deposit ratio is calculated.” Applications enterprise business as a long-term strategic business. But

have also been approved by the CBRC for issuance from a short-term perspective, the single transaction size

of micro-enterprise financial bonds in the following for small and medium enterprise business is relatively

amounts respectively – 50 billion yuan, 30 billion yuan, small with low derivative deposits, and does little to help

20 billion yuan, 30 billion yuan and 8 billion yuan – for a banks grow rapidly. Moreover, on an enterprise-wide

total of 138 billion yuan issued by the five leading small level, the strategic goals and plans for small and medium

and medium enterprise lenders, namely Minsheng Bank, enterprise businesses are generally clear. The small gains

Industrial Bank, Shenzhen Development Bank, Shanghai in the short-term have slowed development of these

Pudong Development Bank and Bank of Hangzhou.20instruments, as banks branches generally develop and

push higher-margin loan products that contribute more

In 2012, we believe that banks will face a multitude significantly to profit targets.

of challenges in the process of developing small and

medium enterprise business niches due to the internal Banks must find a business model that fits the

resource reallocations, business model adjustments and characteristics of small and medium enterprise business.

operating system optimization. 21Currently, a considerable number of these enterprises

fail to establish a sound financial base due to strategic

With the reallocation of internal resources, the contrast and human factors. They also lack complete accounting,

between long-term gains and short-term gains, as well adequate financial statements accepted by financial

as between strategy for the entire bank and execution auditing departments, and sound and continuous

by bank branches, creates challenges. For a long time, operating performance. At the same time, systems

expansion has been the primary goal of domestic banks. for supporting small and medium such as mortgages,

To do so long-term, banks must adjust their asset and guarantees, credit ratings and financial support systems,

business structure, and focus on small and medium may not be sound. Banks find it difficult to understand

the financial status, operating performance and

development prospects of such enterprises, which can

make it difficult to manage and control for risk, further

slowing the spread of these credits. If the traditional

model of business banking is used to develop small

and medium enterprise business, banks will face an

unfavorable situation in which investment costs are high,

efficiency is low, and business volume is difficult to grow

rapidly. Moreover, most banks lack the specialized skillset

and operating systems necessary to support small and

medium enterprise credits; additional talent and training

as well as operating system adjustments would need

to be made to upgrade staff and systems to efficiently

process these credits.

Resolving financing difficulties for small and medium

enterprises is a long-term process. For banks, the

development of these credits is aligned with the

necessary adjustments to asset structure and revenue

that can achieve sustainable bank growth. In order to

develop small and medium enterprise business well, 20 China Business Journal,

though, commercial banks need to adjust the internal November 19, 2011, “CBRC

organizational structure as well as management Quickly Approves 138 Billion

Yuan of Small and Micro

and control models; explore small and medium Financial Bonds Issued by

enterprise business models that fit the bank’s inherent Five Banks”.

characteristics; and build supporting systems for 21 Deloitte: New Thinking and

corresponding business processes, human resources New Modes—the Path for

Chinese Commercial Banks

and information that make lending to this sector more of China to Develop Small

efficient and cost effective.and Medium Enterprise

Business, December 2011.

2012 China Banking Industry Top Ten Trends and Outlook—Enhancing Capital Management, Meeting New Challenges7

2012 China Banking Industry - Top ten trends and outlook

制改革的步伐日趋加快制改革的步伐日趋加快IV. Rural financial system reform accelerates from the promotion of rural-related financial services自改革开放以来，我国农村金融事业得到了巨自改革开放以来，我国农村金融事业得到了巨展。在 2010年，农商行资产总额达到 27,670展。在 2010年，农商行资产总额达到 27,670大发展。 With reform efforts opening up Chinese,markets to大发展。农村金融机构改革持续推进,支持“三亿元，占比农村金融机构 19.53%。占比银行农村金融机构改革持续推进支持亿元，占比农村金融机构 19.53%。占比银行“三 and 2.90 percent of assets in the banking industry as a农”发展力度不断加强。中国的农村金融机构 have业金融机构 2.90%(见表 1)1)农”发展力度不断加强。中国的农村金融机构业金融机构 1).。近几年来，农 the outside world, rural financial services in China whole (see Table 2.90%(见表。近几年来，农 undergone a development reformation as well. Efforts主要由农村商业银行、农村合作银行、农村信主要由农村商业银行、农村合作银行、农村信村商业银行的利润增长很快，农村商业银行村商业银行的利润增长很快，农村商业银行 of rural financial institutions– including rural commercial In the past few years, the profits of rural commercial用社组成。其主要业务是为农村家庭以及微小用社组成。其主要业务是为农村家庭以及微小 2010年的税后利润达到 279.9亿元，从 2007 2010年的税后利润达到 279.9亿元，从 2007 banks, rural cooperative banks and rural credit banks have grown rapidly. By 2010, after-tax profits f …… 此处隐藏：5773字，全部文档内容请下载后查看。喜欢就下载吧 ……