Defects and deficiencies the postal savings bank

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					Defects and deficiencies the postal savings bank
?By historical factors, be listed in the postal savings banks will face
some difficult issues, and are subject to restrictions. If you can not
pay sufficient attention to and take concrete measures to resolve the
future of the postal savings bank will not smooth sailing.
January 2, China Banking Regulatory Commission officially approved the
establishment of postal savings banks, postal savings banks available
just around the corner. Decade-long dispute over postal savings reform
will eventually come to an end, the industry inside and outside the many
complaints about the postal savings and the accused will be quiet, those
who care about the fate of the postal savings can finally breathe.
There is no doubt that the establishment of postal savings banks comply
with the international trend, will in large part to the old postal
savings system, many defects and shortcomings, and to some extent the
Bank of China (5.58, -0.01, -0.18%) industry and the Chinese banking
system sound. But we must see that by historical factors, be listed in
the postal savings bank still faces some difficult issues, and are
subject to restrictions. If you can not pay sufficient attention to and
take concrete measures to resolve the future of the postal savings bank
is still not plain sailing.
Policy-oriented and commercial impulses

CBRC's approval, the postal savings bank's market position is mainly for
the "three rural" retail business in rural areas. Therefore,
the postal savings bank is not generally a commercial bank, but has a
strong policy of "quasi-policy banks." But according to the
State Council adopted in 2005, "the Post Reform Programme", the
postal savings bank is

Bank of China Post Group Holdings, is a thoroughgoing financial
enterprises. Nature of business must abide by its daily business
operations of commercial principles to the pursuit of profit maximization
as the goal.
That is what happened, driven in large profits, the postal savings bank
funds already carried out the operation of business, and beginning to
take shape, and was approved in 2006 for the syndicated loan business
start-up. Corporate nature of the impulse to bring the commercial
orientation and policy requirements will give the postal savings bank
dilemma, predicament. The one hand, under the guidance of business
principle, the postal savings bank will spare no effort to carry out
syndicated loans, funds the operation of business, to obtain high
profits; the other hand, the policy requirements, the postal savings bank
has to actively disseminate small rural credit, and rural financial
institutions to cooperate. Therefore, how to arrange funds became the
first major challenge it faces.
Meanwhile, on the one hand, service orientation required three rural
postal savings bank's capital from peasants and use of agricultural; the
other hand, the pursuit of profit motive has driven the postal savings
bank collected a large number of transfers from rural to urban
operations, how grasp the coordination of a second problem.
Awkward competition and violation Xichu
Policy-makers Cheng Li Postal Savings Bank and placed a lot of
expectations, in addition to addressing deficiencies and shortcomings
Yuanyou system but also hope its the perfect urban and rural financial
service functions, improve the level of financial services to support new
socialist countryside construction Deng play an active role . However,
the wide range of policy objectives will allow the postal savings bank in
the ordinary course of business and become entrapped in the embarrassing
situation, the conflict between the objectives, and ultimately to the
original intention of the policy-makers fail.
Not difficult to see, the most obvious point is how to deal with the
postal savings banks and rural financial institutions, the relationship
On the one hand, "improve rural financial services, improve rural
financial services," the policy objectives will inevitably require
the postal savings banks and rural financial institutions to compete in
the competition, improve service levels, but it made with regulators,
" Postal savings bank to strengthen rural financial institutions
fully operational cooperation, "the requirements of the conflict;
the other hand," support the building of new socialist countryside,
"asked the postal savings banks to increase support for agriculture,
more business in the rural areas, and do may strengthen rural financial
institutions operational cooperation; but clearly the reform program,
"the postal savings bank to become a market-based management, with

Modern and competitive banks ", which makes postal savings banks to
profit-maximizing business objectives, and with the existing financial
institutions to compete vigorously to expand the business with high
profit margins. Obviously, this is mission impossible.
In addition, past experience proved, postal savings and the process of
competition in rural financial Jigou often that the over competition,
breach Xichu frequent phenomenon; Er process of cooperation between the
two Youjingchangkuai occur collusion with each other fake certificates of
deposit Yi Kai Chu Chu Xu completed the task of situation. How to solve
these problems, handle the relations between the two is indeed a test.
Network advantages and potential risks
Compared with the existing commercial banks, postal savings bank's
greatest strength lies in its 31 provinces and cities all over the
country's 36,000 outlets. Even the four state-owned banks can hold a
candle, shame. This is also the number of postal savings bank industry
experts optimistic prospects for the future development of the most
important reason. I also believe that the support in the network edge,
the postal savings bank will be in the middle of business and retail
business, good job to achieve rapid development and competitive
Note that, in the postal savings banks 36 000 outlets in a considerable
portion of Rengran smaller, outdated facilities and equipment behind,
there is a big security risk. Staffing in most rural areas only three
outlets, teller set of postal services, savings services, agency business
in an authorized system difficult to implement, one more gang problems
very serious. Moreover, some networks only two employees to maintain
daily operations, risk control useless, huge potential risks.
Obviously, such outlets can not be compared with existing commercial
banks, more no particular advantage at all. How to solve the existing
problems in existing networks, particularly network security and
practitioners of moral hazard, network strengths and weaknesses to
achieve a balance between, the same is a very difficult one to solve.
Lack of information superiority and experience
With customers to solve their own problem of information asymmetry
between the commercial banks credit the key to effective implementation.
It can be said, has a very familiar situation on the ground staff became
after the establishment of postal savings banks to carry out the
advantages of credit operations, has become a postal savings bank to
compete with other commercial banks where the bright spot.
From a practical point of view, the establishment of postal savings banks
attached to the beginning of the postal business, while some of the
postman on the shoulder the duties of Reserve Association, responsible
for day to and from the area's streets, local businesses and residents is
very understanding. This is its very beneficial to carry out micro-credit
operations. However, most employees in the postal savings less educated,
are not familiar with the financial business, in particular the lack of
credit experience, and postal savings system is far from existing
training resources can not meet the actual needs. Considerable number of
staff and network executives can not effectively implement the basic
processes of the business, and the corresponding control measures exist
in name only.
The reality of the postal savings bank conducting business face greater
credit risk. Particularly in the current commercial banks began to shift
the risk of various pricing, the implementation of economic capital under
management, Postal Savings Bank has a staff of information superiority
are also facing their own professional weaknesses. How to find a balance
between the two, and be resolved in the short term, it is placed in front
of the postal savings bank a major challenge.
Deposit and loan interest and credit shake to eat
Handle the reform, development and stability is to determine the
relationship between the success or failure of a reform of the key test
of reform is also a promoter of intellectual problems. Can not be
avoided, the current postal savings banks are facing further advance
reform and to ensure the stability of the relationship between the
There is no doubt that reform of existing institutional arrangements,
especially the "loan-to-eat spreads not only to keep" the
unreasonable arrangement to address the key shortcomings of the existing
postal savings. This is the international trend of development of postal
savings. This means that postal savings banks to gradually move closer
towards genuine commercial banks, and gradually involved in lending
operations. Thus, the postal savings original "deposit not only
credit risk-free" gold standard operating characteristics and will
cease to exist; and this is precisely the postal savings in the market
competition to win customers confidence and liquidity risk against Trump.
According to the reform program, the Postal Savings Bank will implement
the market-oriented management, at their own risk and losses. Postal
savings bank in the case of lack of credit experience to carry out risky
credit business, is bound to change its image in people minds of credit.
If unable to maintain the original "state credit can not be
shaken," the image of the past two years frequently occurred in the
run will certainly occur again, and even the postal savings banks have
significant impact on social stability. Fifties and sixties of last
century occurred in credit crisis is still fresh, the postal savings bank
and the relevant departments should arouse vigilance.

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