Research On The Impact Effects Of Foreign Banks Enter The Chinese Banking Industry

since the late 1980s, the trend of world economic integration has been strengthe- ned in the international financial field, the developing countries to gradually open the banking sector. The banking sector as the financial industry an important component of the face grow in strength, expand profits, raise awareness and improve the system, strengthen management and a series of important issues, but for developing countries, the final task is to achieve the improvement of operating efficiency and strengthen its banking system stability of these two central goals. Therefore, a large number of foreign banks to enter China's banking sector after the performance and stability is to study the effects of greater relevance and practical significance, this is also the main topic of the paper.At first this paper introduced foreign banks to enter the relevant theories, using multiple linear regression model empirical analysis of the results showed that: "following the customer" strategy is to promote foreign banks to enter China's most important factor, domestic credit and loan-to-deposit difference on foreign banks to enter China also has a role, and China's imports and the entry of foreign banks were negatively correlated; On the second part of the foreign banks to enter China's history and development of the process: foreign banks in China has experienced "start - adjustment - accelerate" the development path, the rapid growth of its business scale, market share rising, the ability to substantially increase the financial services; The third part of the system on the foreign banks enter the Chinese banking sector effect: the performance, the foreign banks to enter China's banking sector is to increase the level of competition, Chinese banks pay more attention to improving operational efficiency and cost control, access to foreign banks China's banking sector to improve the performance of the effect, but China is now a market-oriented interest rate reform, interest rate has not yet fully liberalized so that foreign banks to enter and can not be directly after the financial markets and interest rates in banks start competition, leading to competition lowering of interest rates in China's banking sector and did not appear on the market; In stability, although the number of foreign banks to enter the increase, reducing the possibility of banking crisis broke out, but the mechanism of the WTO, foreign banks entering the domestic banking industry has intensified competition in the short term, the pressure of competition is a direct consequence of commercial banks operating conditions deteriorate, resulting in partial or overall adjustment of the banking sector, foreign banks may still lead China into the banking system of risk concentration.The combination of more foreign banks enter the Chinese banking industry on the effects, the paper think: Chinese banks, only to speed up the reform process to further improve its competitiveness, to the end of 2006 the full liberalization of the financial industry after calmly deal with the entry of foreign banks --- that is, With the business of foreign banks and equity to make up for their lack of cooperation, by adjusting the operating structure to achieve the transformation of business strategy; through the improvement of corporate governance cultivate their own core competitiveness of business by addressing the practical problems in improving market contingency; through the implementation " people-oriented "concept to enhance the value of human resources.