Case Name :      China Merchants Bank: Business Model Transformation

Authors :           Mingkang Liu, Hugh Thomas, Gang Du

Source :             Ivey Publishing

Case ID :            W14297

Discipline :        Finance

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

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.