Research On Entry Motivation, Strategies, And Impacts Of Foreign Banks In China

After China's accession to the WTO , the transition period is coming to an end, China'sbanking industry has been gradually implementing its commitments, and the degree of financialopenness is increasing, the foreign banks in China already launched fierce competition in thegeographical, customer, operational, and other aspects with the Chinese banks. I believe thatafter Chinese banking fully liberalized by the end of 2006 the competition will be furtherescalation, therefore how to make Chinese-funded banks keeping success and achievingdevelopment in competition with foreign banks, and how to make use of foreign bank resourcesfor the economic development of our financial services will become urgent and vital issues.Studies in this field, mainly focus on the experiences that the international foreign banksenter the Eastern European transition economies and developing countries in Latin America. Thispaper is based on international experience, in line with China's reality, analysed the cause offoreign banks enter into China, competition strategy in China and the impact of China's bankingindustry, concluded that the entry of foreign banks have direct or indirect positive impact onimproving the Chinese banking efficiency and broaden the financing channels, and further notedthat the introduction of foreign bank competition affect the stability of our banking systemdepends on the effectiveness of China's financial supervision. Therefore, the final part of paperpresented some measures and proposals to that in the conditions of financial opening, how toimprove the efficiency of foreign banks supervision and ensure the security of financialmarket .