China Merchants Bank: Business Model Transformation
(10 pages of text)
The chairman and chief executive officer of China Merchants Bank (CMB) had led CMB through a decade of rapid development, implementing two transformations to save capital, develop culture and serve the financial needs of China’s new businesses and consumers. Notwithstanding successes, however, CMB’s capital constraint was biting and the stock market was punishing CMB’s shareholders. Slower domestic growth, an uncertain international economy and increased government regulation increased the challenge facing the chairman: to set CMB’s future strategy.
is available for viewing online.
The case can be used in an undergraduate or MBA commercial banking course, or as part of a service leadership general education course to help students understand:
- The methods by which banks earn revenue.
- The key value drivers of bank performance analysis and how to assess the comparative performance of banks.
- Different bank strategies and changing strategy from balance-sheet-intensive banking to fee-intensive banking.
- How to assess differences in leadership styles and how those differences affect bank culture and performance.
Finance and Insurance
China, Large, 2012
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