ABSTRACT
During the era of boiling competition, both commercial banks’ ability to adjust themselves to meet the requirements of the changing environment and to what extent they can manage to do so mostly depend on the business running pattern they choose. The business running pattern of syncretism of local and foreign currencies is playing an increasing important role in the reform of state-owned commercial banks, because it to a great degree helps to materialize the reform of state-owned commercial banks. As the resource of foreign exchange fund is increasing continuously, we need to improve our abilities of capital operation and risk control. Going with the further development of China’s reform in foreign exchange system, especially after the innovation in formative mechanism of RMB in 2005, the floating elasticity of RMB will be enhanced, in addition, the total amount of foreign exchange and the decision differences of holding currency structure will directly affect the commercial banks’ running benefit. Therefore, only that we set up effective management system of syncretism of local and foreign currencies, restructuring the foreign exchange business process, we are able to be seasoned with the changes and developments of the market and keep away the risks hailing from the foreign exchange market.
In recent years, although china’s commercial banks have implemented the syncretism of local and foreign currencies strategy in different ways based on their own situations, which somehow resolved the administrant problem, most banks didn’t break out the traditional thinking ways in designing the department structure and plotting out the functions of them. The choice of management pattern, consolidation of business process and risk control may not be well-pleasing and operational effectiveness of the foreign exchange fund was restricted to them.
Going with the innovation in formative mechanism of RMB, fluctuation of RMB value will be more frequent and floating amplitude will be larger. At the same time,