Foreign Bank Entry And Regulation

From the 1980s, the global financial process accelerates incessantly, with the financial freedom of the developing countries. As an important part, banking internationalization becomes a non-stopping tide, sweeps all places of the world. Since the 1980, the Chinese banking open-policy experiences from local district to the all places of the country, from foreign currency business to RMB business, from foreign residents to Chinese residents. The open of Chinese banking has been pushed smoothly, and gradually. The organizations of foreign banks expand uninterruptedly, and the business sizes of foreign banks increase rapidly. Foreign banks have been the important part of Chinese banking. In this realistic background, researching the problem of foreign bank entry and regulation has very important realistic and theoretic meaning.The realistic meaning is that ,on the one hand ,the banking and regulation authority of host country should analyse the reasons, behaviours and effects of foreign bank entry, and eastablish corresponding strategies and regulational measures,on the other hand, the banking of host country may learn the overseas business exeriences of international banks, and realize the"going abroad"strategy . The theoretic meaning is that researching the foreign bank entry and regulation with the most market chance, the international banks most attention, and the most emerging market county and developing country, is a great contribution to international banking theory and transitional economy.So, the dissertation studies this problem from the theoretical and empirical angles. The keystone of theoretical study sets up models to analyse the inherent-mechanism of foreign bank entry and regulation based on utility function theory, real option theory, game theory and information economy. The keystone of empirical study analyses the foreign bank entry and regulation based on Chinese market. All the study wants to open out a series of explorations of the problems about foreign bank entry.The dissertation first summarizes the research results about the problems of foreign bank entry and regulation, points out the limitations of existing literatures, and the next research aspects. Then, the dissertation studies the reasons of foreign bank entry, the behaviors of foreign bank entry, the effects of foreign bank entry and the regulation of foreign bank entry from the theoretical and empirical angles. At last, the author summarizes the dissertation, points out the lack of the dissertation and puts forward the next research aspects. Based on this way, the dissertation comprises the following three parts: Chapter 1 to Chapter 2 is the first part of the dissertation. This part points out the background, the meanings, the mostly aim, the methods and the structure of the dissertation, then summarizes the existing literatures.Chapter 3 to Chapter 6 is the main part of the dissertation. Base on host country, this part studies the problems of foreign bank entry and regulation from the theoretical and empirical angles. The Chapter 3 to Chapter 5 analyses the reasons, behaviors and the effects of foreign bank entry, and the Chapter 6 studies the regulation of host country to foreign bank entry based on Chapter 3 to Chapter 5.Chapter 3: studying the reasons of foreign bank entry. The theoretical part is to establish model to explain the reasons of foreign bank entry; and the empirical part is to test the reasons of foreign bank entry with global data and Chinese data.Chapter 4: studying the behaviors of foreign bank entry. The theoretical part is to establish models to explain the timing choice and pattern choice of foreign bank entry; and the empirical part is to anlyse the behaviors of foreign bank entry and the influencing factors with Chinese data.First, this part analyses the timing choice of foreign bank entry and reasons, then, the location choice and reasons, at last, the pattern choice and reasons based on Chinese market.Chapter 5: studying the effects of foreign bank entry. The theoretical part is to establish a game model to demonstrate the effects of foreign bank entry to the host country banking; and the empirical part is to test the effects of foreign bank entry to the Chinese banking efficiency.Chapter 6: studying the regulation of foreign bank entry. The first part is to explore the theoretical base of regulation to the foreign bank entry, then, establish sigal game model, moral hazard model and moderate regulation model to analyse the regulation to the foreign bank entry. The empirical part is to anlyse the international experiences of the regulation to foreign bank entry and some host countries regulation cases , at last, analyse Chinese regulation experience to foreign bank entry and the limitations ,then brings forward some advices.Chapter 7: the third part of the dissertation. The chapter summarizes the research, gives some advices and prospects the future research of the problem of foreign bank entry.The main innovations of this dissertation are as follows:1. Based on utility theory, the author establishes the micro-model of the reasons of foreign bank entry. From a utility model of foreign bank entry, the author explains the reasons of foreign bank entry. The micro model and the OLI theory based on host countries financial freedom can construct the theory base of the motivation of foreign bank entry. Then, the author analyses the motivation of foreign bank entry Chinese market empirically based on three phases panel data.2. Establishing the timing choice model of the foreign bank entry. The author analyses the optimal choice timing from the theory based on real option model firstly. Then, the author analyses the timing choice of foreign bank entry Chinese market and its affecting factors empirically. 3.Analyzing the mode choice of foreign bank entry Chinese market and tests the factors that affect the pattern choice of foreign bank entry firstly. The author researches the pattern choice of foreign bank entry in Chinese market and its affective factors with the ordinal result Logistic regression model.4. Establishing the effect model of the foreign bank entry. The author extends the classical K-M model in micro-bank theory,and analyses the effect of foreign bank entry to the host countries banking.Relative results are published in Finance Research, Shanghai management science ect. The other results are in the phases of reviewing, such as Research of International Finance, Management Review and Journal of Shanghai Jiaotong University etc.