A Study of Mixed-Operation of Western Banking Industry and the Inspirations to China : The German Bank A as an Example

Citation

Jiang, Pengfei. (2017). A study of mixed-operation of Western Banking Industry and the inspirations to China: The German Bank A as an Example. (Independent study, Master of Business Administration). Bangkok: Siam University.

Abstract

The mixed operation of the financial industry refers to the integration and concurrent operation of various sub-sectors in the financial industry, such as banking, securities, insurance, and trust, as opposed to separate operations. With the increasing development of economic globalization and financial liberalization, the global banking industry has become increasingly competitive, and mixed operation has become an inevitable trend for the development of the global banking industry. From the perspective of Chinese situation, with the reform and opening up and the deepening of financial advancement and the continuous improvement of the financial needs of residents and enterprises, the financial industry’s separated business landscape has been difficult to adapt to the needs of foreign market demand and competition, and thus the Chinese financial industry has begun to Gradually shift to a mixed business model. In 2012, the China Pingan Group acquired the Shenzhen Development Bank through share exchange and opened various sub-industries such as group banking, insurance, securities, and trust, realizing the business synergy of each business. As of February 22, 2016, eight of the 16 listed banks in China have obtained securities licenses through subsidiaries. The mixed operation will help Chinese commercial banks to better cope with the pressure of competition in the international banking industry and better meet Chinese growing financial needs. This is an inevitable choice for the development of Chinese commercial banks. As a model of mixed operation, Germany’s universal banking model has accumulated a lot of useful experience in long-term practice, which can be used for learning and learning from China.

Although China is different from Germany in terms of financial industry and economic development level, regulatory capacity, and development environment, it determines that the current mixed operation of Chinese banking industry is dominated by the financial holding group model, but the German all-round banks are in the mode of operation and internal The exploration of governance structure, risk management, and financial supervision has certain implications and implications for the Chinese banking industry’s mixed operation and financial supervision. In the future, China may also develop all-round banks after relevant conditions mature. The all-round banking model of German Bank A has certain implications for Chinese commercial banks in carrying out mixed operation. Some problems in their development, such as excessively high proportion of derivatives and mistakes in mergers and acquisitions, also give warnings to Chinese commercial banks. While we are learning from the useful experience of foreign financial mixed industry operations, we must combine Chinese national conditions and strive to explore a road for Chinese banking mixed operation.

Keywords:  Mixed-Operation Banking; Universal Banking; German Bank A;  Experience and Enlightenment.

A Study of Mixed-Operation of Western Banking Industry and the Inspirations to China : The German Bank A as an Example

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand