3.2 Research method 17
Chapter 4 Findings & Results 17
Chapter 5 Conclusion & Expectation 19
5.1 Conclusions 19
5.2. Recommendations to the China commercial banks 20
5.3. Limitations & expectations 21
Chapter 1 Introduction介绍
1.1. Rationale for the research1.1.1.The background of the study
Under the background of depth adjustment of economy globalization, the growth of Chinese economy plays a positively significant role on promoting the development of world economy. China Banking industry opened its door to the outside world since 11 Dec. 2006. In accordance with the data of China Securities Regulatory Commission, there have been 35 foreign corporate banks, 45 foreign banks which were supposed to handle RMB transactions, 25 foreign corporate banks, 25 foreign-owned bank branches which were supposed to run the financial derivative product transactions and 5 foreign corporate banks which were supposed to issue RMB currency financial bonds until the end of 2011. Through six years’ development, foreign-owned banks have been more comfortable with the competitive model of China market, expanding stably in the China. For example, foreign capital banks open up the situation quickly in the business of bankcard, electronic banking and personal loan through flexible design of products and pricing strategies. In the meantime, foreign capital banks usually tend to offer more and steady promises of capital preservation in the term of financial services. Furthermore, many foreign capital banks push out comprehensive financial service plan taking meeting the family’s long-term financial demand as subject, in order to build the brand image of sweet financial partner and cultivate long term and stable cooperative relationship with clients. And the annual reports of many banks show that the expenditure of foreign capital banks is increasing with its expansion. In addition, there has been a dramatic shift in the China banking financial system. Municipal commercial banks and country banks and many other kinds of banks are constantly merging. Bank products and services of various kinds of banks tend to be same, which leads to the banks’ market share become smaller and operation risk become greater. What’s more, People's Bank of China adjusted the floating range of deposit, making the banks’ net interest margins reduced. All the above factors lead to commercial banks’ profit margin becomes narrow.
5.3. Limitations & expectations
As the limited personal capacity and poor bank working experiences, there are some weaknesses of this dissertation. On the one hand, the collection of data is not enough. For example, the costing information about the whole bank lacks and only the information about branch A can be obtained, which make the persuasion of the specific case analyses not enough. On the other hand, with the limitation of objective condition, the classification of the activities and cost drivers is too easy. This makes the study not thorough enough. Hoping the future research can collect enough information and analyze the case more comprehensive, making the research better.
References 文献
Adam, S. (2014) ‘Assessing self-selection and endogeneity issues in the relation between activity-based costing and
