Study On The Motivation Of International Operation Of Chinese Commercial Banks

This article studies the motivations of the international operations of commercial banks of China. The aim of this article is to find out the main motivation and guide the commercial banks to cope with the next step.First, this article introduces the background, meanings, methods, contents and technology roadmap of the international operations of commercial banks. Then, it defines the main concepts involved, reviews the main theories and introduces the current researches and characteristics of the international operations of commercial banks. Based on these, this article carries out empirical research on the motivations of the international operations of commercial banks. The empirical study divides the motivations into two parts: the internal factors and the external factors, and then establishes two panel data models: one of them studies the possible internal motivations of the commercial banks, and the other focuses on the situations and possible motivations of the branches established in 28 host countries(regions) by the commercial banks. The results of the empirical study show that seven indicators are the driving forces of the international operations of commercial banks in China. These indicators are the size of the bank, experiences in international operations, China's FDI on non-financial enterprises in the host countries, bilateral trade between China and the host, the exchange rate of the host countries, the geographical distance between China and the host countries and whether the host countries have financial centers. Finally, by a brief analysis of the empirical results and a comparison of the motivations between the international banks in China and developed countries, this article finds out the constraints of commercial banks in international management and makes recommendations accordingly to our government and the commercial banks.