The establishment and development of
private banks are of great benefit to improve the financial system in China,
since it has been in an important period of the financial system reform.
Despite such an excellent opportunity, private banks are still faced with many
risks, such as imperfect legal environment, fierce competition in the banking
sector, lack of outstanding management personnel and a proper market position.
In order to address these issues, the government should improve the legal
environment, and enhance effective supervision. On top of this, private banks need
to expand profit channels through financial innovation, have an appropriate market
position and improve the management level. Systematology by Bertalanffy (1937) is
valuable for analysis of the problem.
Cite this paper
Lu, M. , Meng, Q. and Zhang, Y. (2015) Risks and Systematic Countermeasures of Private Banks in an Era of Hypercompetition. Open Journal of Social Sciences
, 15-22. doi: 10.4236/jss.2015.37003
 Benjamin, R. (2013) Community Bank Developments in 2012.
 D’aveni, R.A. (1994) Hypercompetition: Managing the Dynamics of Strategic Maneuvering. Free Press, New York.
 Ma, J. (2014) Op-timization of Private Bank Supervision and Management System. Macroeconomic Management, 8, 55-57.
 Xu, D.Q. (2004) Rural Financial Reform and Private Banks. Contemporary Finance & Economics, 9, 27-31.
 Wang, Z.L. (2002) Whether to Establish Private banks: It Should Be Put off—Discussion with Some People in Favor. Journal of Financial Research, 11, 79-86.
 Federal Deposit Insurance Corporation (2012) FDIC Community Banking Study.
 Roy, R., Vaijayanthi, P., Shreenivasan, K.A., Preetha, H. and Sinha, S. (2012) An Empirical Study on CRM as a Tool to assess Customer Satisfaction for Banks—A Comparison of Public Sector Bank with a Private Sector Bank. International Conference on Management Issues in Emerging Economies (ICMIEE), Thanjavur, 17-18 August 2012, 90-94.
 Sun, J.F. (2007) Systematic Analysis about Operation of Bank Credit. Journal of Central University of Finance & Economics, 8, 31-47. http://dx.doi.org/10.3969/j.issn.1000-1549.2007.08.007
 Hu, M.Y. and Meng, Q.J. (2014) Risk and Systematic Analysis of P2P Platform Development. Wuhan Finance Monthly, 6, 45-48.
 China Banking Regulatory Commission (2014) China Banking Operation Report in 2014.