The reason why China s commercial banks focus on formality in their operations

1. Efficiency, safety and liquidity. As a corporate legal person, commercial banks make profits as their primary purpose. However, efficiency is premised on the safety and liquidity of the asset.

Security is also reflected in liquidity, which is based on efficiency. In the course of operation, commercial banks must effectively seek an effective balance between the three.

2. Operate independently and independently in accordance with the law. This is the concrete embodiment of commercial banks as enterprise legal persons, and is also an inevitable requirement for the operation of the market economic mechanism. Commercial banks shall conduct business in accordance with the law and shall not be interfered with by any unit or individual.

As an independent market entity, it has the right to handle all its business and management affairs in accordance with the law, participate in civil activities independently, and independently bear civil liability with all its legal person assets.

3. Protect the interests of depositors. Deposits are the main funds of commercial banks**, and depositors are the basic customers of commercial banks. Whether or not a commercial bank, as a debtor, fully respects the interests of depositors, strictly fulfills its debts, and earnestly assumes the responsibility of protecting the interests of depositors has a direct bearing on the bank's own operations.

4. Voluntary, equal, honest and trustworthy. The civil legal relationship between a commercial bank and a customer is that of equal subjects. Therefore, commercial banks should conduct business dealings with customers on the basis of equality and voluntariness, conduct fair transactions, and should not be forced or attached unreasonable conditions, and both parties should perform their respective obligations in good faith and comprehensively.

At present, the business models of China's commercial banks mainly include the following:

1.The traditional model of Qiaochun of commercial banks is based on stable credit business, emphasizing risk management, as well as traditional payment, settlement and bill business.

2.The innovative model of commercial banks focuses on payment and settlement business, strengthens digital services, expands diversified businesses, promotes the development of financial technology, promotes the inclusiveness of financial services and provides precise financial services.

3.The investment model of commercial banks focuses on investment management and asset management, and provides customized financial services to customers, so as to realize the monetization of customer assets, optimize the portfolio and achieve long-term investment returns.

4.The network model of commercial banks, supported by financial technology and big data technology, establishes a financial network to meet the different needs of different customers, improve the quality of services, and improve the efficiency of Jinxiaola's financial services.

Summary. 2. Resolve non-performing loans and reduce financial risks.

From the perspective of bank credit asset quality, the average non-performing asset ratio of the world's top 20 banks is only one, which requires the use of off-balance sheet business to prevent and resolve financial risks.

3. Reduce operating costs and improve return on assets.

With the increase of bank costs and the decline of income, it is difficult for simple traditional business to meet the multi-level and diversified financial needs of customers and the guarantee of bank income, and the state-owned commercial banks have too large scale and too many branches and employees, so banks must reduce operating costs. In this case, off-balance sheet business is ideal due to its low cost and improved return on assets.

Briefly describe the reasons for the superficial business development of commercial banks.

The reasons for the superficial business development of commercial banks. 1. Adapt to the reduction of interest rates and look for new profit growth points. The low interest rate of banks has lowered the marginal interest rate of bank funds, which is the continuous narrowing of the spread between bank deposits and loans.

Under such circumstances, the room for commercial banks to make profits is very limited, and they must adapt to the changes in the market environment, develop various non-interest businesses, and look for new profit growth points.

2. Resolve non-performing loans and reduce financial risks. From the perspective of bank credit asset quality, the average non-performing asset ratio of the world's top 20 banks is only one, which requires the use of off-balance sheet business to prevent and resolve financial risks. 3. Reduce operating costs and improve return on assets.

With the increase of bank costs and the decline of income, it is difficult for simple traditional business to meet the multi-level and diversified financial needs of customers and the guarantee of bank income, and the state-owned commercial banks have too large scale and too many branches and employees, so banks must reduce operating costs. In this case, off-balance sheet business is ideal due to its low cost and improved return on assets.

4. Use off-balance sheet financing technology to increase funds**Commercial banks can increase their funds by carrying out off-balance sheet financing techniques, such as loans, issuing standby letters of credit, etc. 5. Improve market competitiveness through business innovation. The expansion of off-balance sheet business of commercial banks is one of the three major development trends of the internationalization of their bank operations, capitalization and off-balance sheet business, and it is also conducive to improving the needs of market competitiveness.

Summary. There are two traditional models of commercial banks.

1.Separate business model.

Under the mode of separate operation, commercial banks can only operate things within the scope of their own business, and cannot conduct cross-transactions with other financial fields.

Its purpose is to standardize financial business, maintain financial order, improve the level of supervision, ensure liquidity and safety, and avoid bad debt losses to the greatest extent.

2.Mixed business model.

Mixed operation refers to the general term for financial enterprises to carry out multi-business, multi-variety and multi-mode cross-operation and services in the monetary and capital markets in a scientific and organized manner.

In addition to providing short-term commercial loans, the mixed business model also provides long-term loans, and even directly invests in enterprises and bonds, underwrites for the company, participates in the decision-making and development of enterprises, and provides investment banking services such as financial support and financial consulting required for mergers and acquisitions.

The hybrid business model is conducive to the expansion of banking business, but it also increases the risk.

In a region or country with good risk management, mixed operation can promote the development of the financial industry. However, in a region or country where risk management is not perfect, it is safer to operate separately and is more conducive to the development of the national economy.

There are several business models of commercial banks, each of which has its own advantages and disadvantages.

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There are several business models of commercial banks, each of which has its own advantages and disadvantages.

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There are two traditional models of commercial banks. 1.The commercial banks under the separate business model can only operate things within the scope of their own business, and cannot cross-trade with other financial fields, which is a kind of business mode in which the banking, the first industry, the insurance industry, and the trust industry set up institutions to operate their businesses independently.

Its purpose is to standardize financial business, maintain financial order, improve the level of supervision, ensure liquidity and safety, and avoid bad debt losses to the greatest extent. 2.Mixed business modelMixed business refers to the general term for financial enterprises to carry out multi-business, multi-variety and multi-mode cross-operation and services in the monetary and capital markets in a scientific and organized manner.

In addition to providing short-term commercial loans, the mixed business model also provides long-term loans, and even directly invests in enterprises and bonds, underwrites for the company, participates in the decision-making and development of enterprises, and provides investment banking services such as financial support and financial consulting required for mergers and acquisitions. The hybrid business model is conducive to the expansion of banking business, but it also increases the risk. In a region or country with good risk management, mixed operation can promote the development of the financial industry. However, in a region or country where risk management is not perfect, it is safer to operate separately and is more conducive to the development of the national economy.

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At present, China implements a business model of functional division of labor.

Although the changes of China's commercial banks have only a history of half a century, the operating system of banks is gradually entering the development trend of mixed business operation along with the process of China's economic development.

1. The development process of the business model of China's commercial banks.

The People's Bank of China, established after the founding of the People's Republic of China, has the dual functions of a bank and a commercial bank, that is, it exercises the functions of a bank such as currency issuance and financial management, and engages in the business of commercial banks such as credit, savings, settlement, and foreign exchange. Before the 80s, bank resources were highly centralized, and the entire bank was the money bag of the treasury, and there was no way to talk about financial efficiency and security. Therefore, there is no job to divide, and "mixed business" has become the most primitive form.

After the Third Plenary Session of the 11th CPC Central Committee, China's reform and opening up officially kicked off, and China's banking industry also entered a period of splitting the market. In 1979, the Agricultural Bank of China was reinstated, specializing in rural finance. In the same year, China Construction Bank was separated from the Ministry of Finance, reinstated its structure, and continued to operate the nation's infrastructure construction and lending business.

Also spun off from the PBOC in the same year was the Bank of China, which specialized in banking related to foreign exchange and foreign trade. In 1984, with the development of China's industry and commerce, the Industrial and Commercial Bank of China was formally established to provide financial services to state-owned industrial and commercial enterprises. The People's Bank of China only exercises the functions of a ** bank.

From 1984 to 1993, China successively established a number of joint-stock commercial banks, including Bank of Communications, CITIC Industrial Bank, China Merchants Bank, Guangdong Development Bank, Shenzhen Development Bank and Industrial Bank. During the same period, a large number of non-bank financial institutions also appeared in China, such as trust and investment companies, ** companies, insurance companies, finance companies, leasing companies, etc. Up to now, China's banks are still practicing the mode of separate operation and supervision under the current legal framework.

2. The comprehensive operation of the financial industry is bound to become the development trend of the future; China's economy has gradually integrated into the tide of the world economy, and China's commercial banks are also entering the big stage of the world economy; China's commercial banks will face a complex foreign financial environment and strong foreign competitors, and the multi-channel means of operation and strong comprehensive strength make it difficult for China's commercial banks to win in the competition. If the status quo is not changed, China's banking industry will lose a large amount of market share under the attack of foreign banks as the United States did in the mid-80s of the 20th century. Therefore, it can be considered that: 1. In the current financial environment of internal and external difficulties, China's commercial banks have gone through 10 years of strict supervision and control over separate industries, and the road of separate operation has become narrower and narrower.

2. The new round of economic development and world economic integration requires China's financial industry to choose a new business model for commercial banks. 3. Judging from the current trend of the evolution of the international financial system, as well as the effective ways for China's commercial banks to strengthen their comprehensive competitiveness and their ability to compete in the market with foreign-funded banks, the implementation of comprehensive operation in China's banking industry will inevitably become a new development trend.