Internationalization Factors Research On Chinese Commercial Banks

In the context of economic globalization and financial liberalization, the international banking M & A activity reached to a climax, which have deepen the process of internationalization of the global banking industry. Participating to the World Trade Organization and the full opening up the banking sector, China's commercial banks have been in a good international development financial environment. The commercial banks'internationalization degree has improved significantly in both size and number of foreign institutions. Up to the end of 2009, China's commercial banks have been established more than 1,000 branch offices in 29 countries and regions, overseas M & A activity gradually strengthen. But, there are some issues in the development process such as unbalanced foreign institutional development, uneven distribution of oversea markets, unsatisfied oversea business income and so on. China's commercial banks successful "going out" strategy has important significance on the driving to multinational corporations, foreign trade and related industries.The factors of Commercial Bank Internationalization can be classified as home country factors, the banks themselves and the host factors. Using regression analysis method into the empirical model, the empirical results show that: economic growth scale, market- oriented and financial system efficiency in the home country factors have a positive effect on commercial banks'internationalization. International management experience in commercial banks has a positive influence related to internationalization. China's FDI and financial center in the hosts'factors also decided the branches'establishment of China's commercial banks in the country or region.Therefore, to promote international development of Chinese commercial banks should first improve the banking sector's financial environment by completing foreign laws and regulations, strengthening financial supervision, formulating reasonable policy guidance, so that the Chinese commercial banks can successfully"going out". Secondly, commercial banks should improve the internal management system and training international talents, to develop the right international routes basing on international experiences. Using step by step approach to choice location advantages, consolidate Hong Kong and Macao markets and steadily developing markets in Europe and America, actively developing new markets in order to ultimately establish a global network.