The Study On Interlization Of Commercial Bank

According to the two level of internalization of commercial banks, this thesis does research on the internationalization of institution and business of commercial banks, and analyzes the Regional Choice Theory and internationalization strategy of commercial banks in China on the basis of relevant conclusions. Its innovations is as follows:it establishes a national selecting method of the internationalization of commercial banks, proposes the forms of organization to realize internationalization from the perspective of contract costs, concludes through model analysis that the capital cost is the determinants of credit market competition for foreign banks in the host country under the assumption of asymmetric information obtained, analyzes the impact of international factors of the commercial banking business, establishes the investment model and analyzes the impact of portfolio investment empirically.The choosing of internationalization of organization of commercial banks includes institutional internationalized way and choice of organizational form. The organizational internationalized way, namely, select the new body or the way mergers and acquisitions overseas expansion. Choice of organizational form includes new institutions, mergers and acquisitions, merger and acquisition, alliance and joint venture. Internationalization of organization of commercial banks, namely, carrier of international institutions, is to make choices between offices, agencies and branches. According to the State Select Model, internationalization of organization of banks depends on the host government's objectives and domestic and external constraints.so foreign banks have chosen different ways to enter different types of countries We classified countries into three categories:transition countries, developing countries and developed countries of non-transition economies. We find out by analyzing and summarizing that in transition countries, foreign banks always have been given opportunities to choose the lowest cost for international institutions as the host of the special economic environment, foreign banks lead rapid completion of the target market through mergers and acquisitions and restructuring of the host country banks. But in developing countries of non-transition economies, foreign banks can only choose to adapt to the host country's development goals, choose new institutional organization to realize internationalization step by step.While in the developed countries, the selection of internalization is gradually transformed to the M & A. Select agency form of organization in the perspective of contract, namely, contract selection, which means choosing the contracts which cost the least under certain circumstances. Contract costs are divided into three parts:fixed costs, monitoring costs and risk costs. Agents, branches and sub-line have different contract costs. Agency's monitoring costs is higher, while the branch has the highest fixed costs; the risk cost of sub-line is higher than the other two ones. International banks should have a comprehensive analysis of all contract costs, and then make choices.Commercial banking business can be classified into credit business and intermediate business. As for credit business, I creatively put forward the foreign banks access to credit competitive advantage. Namely is, under the condition of asymmetric information, foreign banks can access to low-risk enterprise market by collateral technology if its Cost of capital lower than the host country banks. Through the establishment of capital cost function, I got the condition that foreign banks' capital costs is lower than those in the host countries, namely, the mother bank's technology and capital power make the fixed costs and transaction costs lower than those from the host countries.On the basis of this, I testified the relations between capital costs and degree of internationalization. The test results show that, a lower capital costs is helpful to improve the degree of internationalization, which means, to lower the capital costs is a way to deal with asymmetric information for international banks.Commercial banks'intermediate business is a multinational bank's core business operations and profits of the fastest growing business; the development of intermediate business is a consequence of economic development and institutional change. The factor that influence intermediate business can be classified into three categories:The first is a commercial bank's business strategy, which is the foundation of its business, the second is the innovation of commercial banks, commercial banks, and the third category is the operation and management capabilities. The positive analysis suggests that, return on assets, asset size and liquidity are all helpful to improve the portion of commercial banks' intermediate business, which means, size, network and brand are supports of intermediate business, and a higher capital adequacy ratio reflects the bank's business strategy of choice. The prosperity of the financial markets is a double-edged sword; normal and prosperity are both backbones to intermediate business, while bubble is a disaster. Because commercial bank's investment is mainly portfolio, this thesis creatively put direct investment and portfolio into one mode to analyze the factors that influence portfolio investment, which provides references for commercial banks' investment. Both the models and analysis suggest that, after being in charge of factors like GDP or some, Labor costs, liquidity, market information and transparency have a strong influence on portfolio investment. Developed countries are more likely to attract portfolio, the reasons is lies in the greater transparency of market information in developed countries. Portfolio becomes more attractive when investors are faced by liquidity shortage.Combines conclusions of bank institutions internationalization and business internationalization, summarizes geographical choice reference indicators of commercial bank internationalization form theory and practical experience. The factors that influence commercial bank internationalization include economic growth potential, cost, information, investors'liquidity and financial market conditions. Different factors have different influence on investment choice, when choosing investment areas, we should consider all the factors comprehensively and make reasonable investing choices in order to increase expected benefits.Combined internationalization research conclusion, analyzed strategies that can be referred to by Chinese commercial banks internationalization,discussed the historical process, experience of Chinese commercial banks internationalization, and then use foreign international banks'experience for reference, we come to an conclusion that, Chinese commercial banks should be cautious on acquisition of foreign ones, In the process of institutions internationalization should be on the basis of new agencies.In the acquisition we should select a potential and fewer cultural and political conflict areas to prevent the failure of post acquisition integration.to enhance capacity of internationalization, I suggest to invest and expand businesses in developed countries, where financial center of business and investment shareholding banks are established. To lay the foundation for development by learning and to improve viability by customer following.