Ma Yuhua: Developing Retail And Small And Medium Businesses To Boost The Transformation Of China Merchants Bank

" innovate The two word runs through all the time. China Merchants Bank The development of China Merchants Bank has promoted the development of Internet, capital market and internationalization of China Merchants Bank. Now, China Merchants Bank is going through second times. Transformation To change the direction of reducing capital consumption and raising capital returns. Pudong, Shanghai, on the night of 9 in late October, slightly tired but still in a brilliant mood. Ma weihua Began to interview reporters.

Shanghai Securities Daily: since its inception, China Merchants Bank has continuously pushed forward the pace of innovation, and has achieved rapid development one after another. What is the driving force behind the transformation and development of these strategies from the 135 concept, to the ten change and to the two transformation? Besides, in the international development of China Merchants Bank, we have seen the establishment of the merger and acquisition of Wing Lung Bank and the New York branch. What else will we see in the future?

Ma Yuhua: when I first arrived at China Merchants Bank more than 10 years ago, I put forward the three step development strategy, namely networking, capital marketing and internationalization. At that time, it was difficult for us to go beyond some big banks and old banks, but there were not many outlets. But the development of the network provided us with great opportunities for development, enabling us to stand on the same starting line with other banks. With the expansion of business and scale, we also need to replenish capital and complete five financing successively in the capital market.

Internationalization is a strategic consideration, not just setting up outlets and doing a few single businesses abroad. With the increase of China's foreign investment, more and more business customers' going out, and the increasing number of bank card's overseas credit cards, as well as the opening of financial markets after China's accession to the WTO, and more and more international financial institutions participating in competition, we must consider their own competitiveness and take the initiative to "go to sea" to understand and learn from the international financial innovation mechanism, which will enlighten us in developing our business in China.

We have set up a representative office in London and recently set up a representative office in Taiwan. Of course, the meaning of internationalization is not only that. What Chinese financial enterprises need most is management internationalization. In addition to system, organization and method, the most important concept is actually the idea. From the 135 concept to the ten transformation and the two transformation, the most fundamental content of China Merchants Bank is changing the concept of our employees.

For example, in the right way to deal with Wall Street. We must realize that the ability of Wall Street to create wealth is far greater than its destructive power. When we view Wall Street, we should not only pay attention to its negative content and demonize Wall Street. We should learn lessons and increase risk awareness, but some innovations that push forward the development of financial market need to continue. In this sense, the internationalization of management is very important. {page_break}

Shanghai Securities Daily: from the formation of an innovative idea to the specific implementation and implementation, what is the key?

Ma Yuhua: the transformation of ideas is a subtle process. First of all, it needs the foundation of ideological culture. The Bank of China has its own specific culture. Because its origin is not a national bank, there is no financial investment or strategic investor, it relies entirely on its own efforts to survive and develop in the market, and can not survive without innovation. For example, if there is a bad loan, we need to sterilate shareholders' profits and interests, and banks themselves will suffer losses. If we can not survive in the market environment, China Merchants Bank will only fall down, which also forces the enforcement power of China Merchants Bank to be strong.

However, even if the execution is very strong, there will be a lot of ideological resistance in the process of transformation. For example, the two transformation of China Merchants Bank has shifted from the consumption of capital to the business of low capital consumption. In the context of increasingly stringent capital constraints, banks can not only make loans to businesses, but must consider capital returns. For example, the bank lending rate for large enterprises will float 10%, but the lending rate for small and medium enterprises will rise by 10%. This is a problem that banks need to consider.

Shanghai Securities News: China Merchants Bank's first transformation achieved an average annual compound growth rate of 50%. What should we expect for the two transformation?

Ma Yuhua: the profits of Chinese enterprises will not always maintain a 50% growth rate. This is a rule, so it can not always be measured by 50%. The extraordinary growth of the past period, I think, will not be possible in the future. Western capitalist countries have also experienced a period of rapid growth, but now it is difficult to achieve the high growth rate at that time. Then, how to define the future capital return and growth rate of China Merchants Bank? We will fully develop in accordance with the goal of coordinated development of efficiency, quality and scale.

Shanghai Securities Daily: what aspects do you think China Merchants Bank's future profit growth point will be? What is the development trend of China's banking industry?

Ma Yuhua: China Merchants Bank's future profit growth point, we have three goals. First, the proportion of retail business is currently 30%, which is still going to increase steadily in the future. Second, wholesale business accounts for nearly 50% of the total number of small and medium-sized enterprises, and the proportion to be increased in the future. Third, middle income, however, is restricted by some development at present. Therefore, I believe that in the next 5-10 years, the interest spread of banks should remain the main source of income for China's banking industry. But loans will consume capital, and as capital constraints become increasingly stringent, banks also need to adjust their structure. For example, in retail business, we also need to consider capital optimization. In last year's loan "thirty percent off" market environment, we will try to reduce thirty percent off of loans and increase loans for micro enterprises, auto loans, etc., which do not need thirty percent off. In the wholesale business, it will increase loans for SMEs, at least part of this lending rate will not float downward. The income of non interest spread business will develop wealth management and private banking business, and carry out business of trusteeship, enterprise annuity and trade settlement within the permitted scope of policies and regulations, and strive to increase its share.

The aim is to maximize capital returns while saving capital and reducing capital consumption, and at the same time, the best balance between income and risk must be achieved. A good bank will not sacrifice efficiency solely for the sake of one-sided pursuit of the lowest rate. It will achieve the maximization of its revenue and achieve the best balance between revenue and risk under a certain degree of risk tolerance.