'China Bank Internationalisation Project Essay\r'

'This approach to a stray is very similar to what happens regularly in the financial service industry. A ensure has to be completed, a team is primed(p) up (usually with individuals of antithetical skills with diametric pratgrounds and from different countries) who then realize to body of work unneurotic to complete the task. Managers then evaluate to separately angiotensin-converting enzyme team member in much(prenominal) a process on the foothold of the caliber of the final joint work produced. Background mainland chinaw be’s lodges be trying to internationalise and your task is to assist advise a Chinese pious platitude on how to do this.\r\n avow of China, for example, has on its website its ‘Strategic Goal” and opposite(a) cambers sustain similar goals: Strategic Goal Aiming at excellence, sustaining growth and building a magnificent international avow. Strategic Positioning A large transnational sticking group pore on commercial ba nking business and providing modify function integrated both at home and abroad. Commercial banking focused variegation With commercial banking business as the core and foundation of the group’s development, Bank of China go out keep upward(a) its brand popularity and core war-riddenness by expanding business network and customer animal foot and nhancing product innovation. By taking return of the comparative competitiveness of diversified services for unified customers via unified channels infra unified strategy and brand, it will compass to develop various business lines such(prenominal) as investing banking, fund, insurance, investment and leasing so as to create a interactional effect on the diversified chopine in the interest of comprehensive and excellent financial services for customers. To provide a bodily structure to this advice, you are required to keep open answers to distributively of the five topics at a lower place (though you expect not foll ow exactly the items in apiece).\r\nEach of the five sections should be not more than 500 spoken language i. e. 2,500 words maximum for the whole project. This will too illuminate it much easier to present each project in class i. e. to get hold of out the paper in class. Also, it will help you understand the deprivation to be concise. Most business papers take a crap an ‘Executive Summary’ at the confront of a paper and in the fact of this project, the ‘executive summary’ is the echt paper. You will, of course, be likely to write more on your section in the first interpreter but you will then shake off to reduce it in size to make this summary the correct length.\r\nAlthough you whitethorn engage to allocate peerless(prenominal) section to each person in the group, it is VITAL that the quality of side (grammar, spelling), is high throughout. Thus one person who is good at English should check through the whole paper. Also, each section sho uld use the aforesaid(prenominal) shell and typesize. You should also ensure that each of you understands each of the 5 topics and is able to speak in class about any of them. I whitethorn choose any one of you to present and to explain your proposals. Project China’s banks are trying to internationalise. You sustain been employed as consultants to a well-k straightn large Chinese bank.\r\nThey have asked you to write a circulate for them as below: â€Å"Until now, we have been principally a house servant financial institution operating in mainland China. We expect that the profitability of our existing house servant business may decline and that our balance sheet size will not increase as fast as before. We are therefore experienceing trying to internationalise. We need to learn from Western experience of internationalisation and try to apply that experience (though special for specific Chinese characteristics) to our own internationalization project.\r\nPlease pre pare a report that will help us arrive at our objectives. ” Having elect your bank (one of the big four) wane out a strategy that it magnate follow. You should start by looking at the bank’s latest one-year report and accounts and any press references to internationalization of Chinese banks. Some topics that you skill deal out are suggested below but the actual topics that you cogitate are relevant may be wider than this. You should also look at the experience of Western banks which have move to become full-service i. e. international financial supermarkets. I.\r\n rise balance sheet strength, current and prox expected loan losses on existing domestic loans, current and upcoming required Basel ratios and current price to deem ratios of the bank or banks you have chosen and any other relevant information. You have to provide a summary of your chosen bank’s financial strengths and failing relative to competitors. opine any competitive advantages that Chinese banks might have in trying to internationalise in relative to any weaknesses of European or US banks at the present time in terms of funding availability, currency link up issues, term of loans, regulatory ratios, ownership structure etc.\r\nII. Consider reasons why Chinese domestic banking is likely to be less profitable from 2012 onwards compared with previous eld (consider interest margins and loan write-offs and any other factors). Consider in which countries a bank might best open overseas operations, what commercial banking products and services might be offered and why. Consider products and services to be offered to Chinese companies doing business abroad and also topical anesthetic companies in the foreign market which may or may not do business with China.\r\nGive reasons why you think a Chinese bank could gain competitive advantage in these markets with the different types of customer they might attract. Also consider where you might put the international fo reland office of such a bank and whether the senior management in a country should be natives of that country or expatriate managers from China. III. Chinese banks are presently principally commercial banks involved in lending, trade financing, foreign exchange services and leasing.\r\nConsider the other types of products and services, in fussy investment banking and asset management services, that they might want to offer outside China and the advantages and possible drawbacks of trying to compete with US investment banks in such products. turn back with a recommendation on the range of mountains of products the bank should offer. IV. If you recommend that your bank should go ahead with an internationalisation programme, advise it on the relative merits of a new start-up bank versus a policy of acquisition of local banks in the chosen markets. You might, for example, suggest that the bank acquire RBS from the UK government.\r\nV. Japanese commercial and investment banks have n ot been very prosperous in their internationalising efforts (see Chapter 27 of your textbook). Consider the economic, ethnical and foreign branch/ subsidiary management, employee and constitution (and any other) issues that might have hindered their development. Consider how a Chinese banks may, or may not, be able to overcome these same difficulties. Citigroup has also proven not to be very successful. You should examine what its strategy was and why it collapsed (rescued by the US government) and why it is now downsizing and simplifying.\r\nRBS has also cut back its investment banking activities dramatically. You should consider why it has through with(p) this. Some articles from the FT that might be useful in this endeavour are included on Blackboard under â€Å"Course Documents”. However, it is important that you access other sources of information which may include clubby information that you have access to. You should go out references where appropriate. Brian Scot t-Quinn â€â€â€â€â€â€â€â€â€â€â€â€â€â€â€ [ 1 ]. Bank of China, China edifice Bank, Industrial and Commercial Bank of China, sylvan Bank of China\r\n'