The Research On Expansion Abroad Of The Chinese Commercial Banks

Bank of expansion abroad in the financial sector to participate in the basic premise of global competition, the banking industry in today's world is a historical trend of development. Since the 1980s, speed of financial globalization is obviously accelerating due to deregulation of the financial system control and financial liberalization policy. Commercial banks all over the world build branches in other countries and achieve mutual communication in the aspect organization, development of bank expansion abroad has become an important performance and content. With China's reform and opening up the deepening and further development and growth of the national economy, commercial banks have entered the golden era of rapid development, many commercial banks are making plans to expand abroad, expansion abroad is quietly rising. However, there is a big gap of the development between Chinese commercial banks and other bigger ones in the world, due to the Chinese commercial banks started expansion abroad not long before.Therefore, to study the expansion abroad of the Chinese commercial banks , and to reveal its laws is an econmic topic, which have both theoretical implication and empirical economic signficiance .Traditional transnational investment theories are only to study the manufacturing sector, and so far, there is no elaborated professional theory of expansion abroad in services, including banking, and whether traditional theories of transnational investment can be applied to services or not still exists different perspectives in academia. Based on recalling the traditional theories of transnational investment, this thesis discusses its applicability to service sector, and analyses its application characteristics, and then chooses the commercial banks as an important component of the service sector, further analyses the explanatory capability of the OLI Paradigm to commercial banks for expansion abroad, and then comes to the conclusion: Compared to other traditional transnational investment theories, this theory enjoys a stronger explanatory capability.In this paper, based on the history and current situation of the bank's expansion abroad, based on the Ecletic Paradigm of the expansion, and combined with the characteristics of the banking industry and China's reality, focuses on the motives, competitive advantages, location choice, mode choice and organizational form choice of banking expansion abroad, etc. First, based on theoretical models, in the framework of the Ecletic Paradigm, this thesis analyze the common motives of bank's expansion abroad, i.e. to follow the customers, to use the operation and management strategies, to seize the opportunity of being the host country, and to enjoy the economic of scale and the scope of economic, etc. And this thesis also brings forward expansion abroad of China's commercial banks enjoys the general motives of banking expansion abroad, and also enjoys other special motives, such as using the existing special advantages, absorbing and utilizing the local advanced technology and management experience, and finding a way out with much capital on hand. Second, from the banks'own advantages and home advantages, this thesis analyzes the factors that influence the banking expansion abroad, based on the factors, evidence research on the China's commercial banks competitive advantages of expansion abroad was conducted, which manifested that China's commercial banks have had competitive advantages of expansion abroad. And their own advantages main include the banks'size, credit among overseas Chinese who live abroad, relations between Chinese firms and banks and the information, etc. However, the rapid development of Chinese economy, the link between China and the world's economy growing, and the support and encourage of the Chinese government to expand abroad constitute the expansion abroad of China's home advantage. This thesis also suggests that the competitive advantages in expansion abroad of China's commercial banks still have a lot of deficiencies. Particularly, there is a big gap between the China's banks'and the developed countries'own advantages. Therefore, the Chinese commercial banks still need to improve their own skills. Third, this thesis analyzes the factors that influence the location chioce of banks'expansion abroad, establishes the quantitative analysis model of the location choice, and with the qualitative and quantitative analysis, based on the combination of China's reality, proposes the gradual location expansion strategies for Chinese commercial banks'expansion abroad. Fourth, this thesis carries out a comparative analysis of the advantages and disadvantages of the way of banks'expansion abroad, studies the game process of choosing the way how the cross-border banks to enter the markets of the host country among the cross-border banks, banks of the host country and the policy of the host country, establishes the quantitative analysis model of the mode choice, and with the qualitative and quantitative analysis, proposes that the Chinese commercial bank should contiue to build new mode of investment and choose the mode of cross-border M&A strategically. Fifth, this thesis analyzes the advantages and disadvantages of the organizational form of the banks' expansion abroad, and studies the factors that influence the choice of organizational form from the aspects of banks'own advantages and the host country's location advantage, and on this basis, establishes the strategy how to choose the organizational form for Chinese commercial banks to expand abroad.