the pressure of RMB appreciation make the banks face with greater foreign exchange risks. China’s state-owned commercial banks come across many new problems and contradiction they never met before. As the state-owned commercial banks are running business in a complicated and changing environment, they must get ready for greater pressure and challenges in liquidity management, ability to control risks and creation of operational profits. In the face of new changes in economic and financial movement of the state and the influence of adjustment of the state’s foreign exchange policy, it is high time for commercial banks to consider how to restructure the traditional business running pattern. Only if we speed up the pace of transformation of operation strategy, commercial banks can obtain the space for living and developing in this changing era.
This article aims at discussing the issue related to the choice and application of the business running pattern of syncretism of local and foreign currencies on the basis of the influence of the adjustment of state foreign exchange rate policy to commercial banks. Moreover, the demonstration analysis of Agricultural Bank of China’s reform in syncretism of local and foreign currencies strategy further emphasize the importance of implementation of syncretism of local and foreign currencies strategy to the reform of the commercial banks and the far-reaching significance of utilization of this kind of business running pattern.
Key words: state-owned commercial bank, syncretism of local and foreign currencies, foreign exchange rate policy, business administration pattern.
