Study On The Effect Of Foreign Entry On Domestic Banking In China

In recent years, quantity and participant degree of the foreign bank entrance host country have risen unceasingly. Many scholars at home and abroad have carried out large amount of theory and demonstration studies on the effect of foreign bank entry on domestic banking in the host countries, and researches indicates that there are advantages and disadvantages on the domestic banking of the foreign bank entry. But most conclusions show that the foreign bank entry could improve the business efficiency of the domestic banking in the host countries, and urge them to improve their competition through all kinds of innovative business.With the thoroughly open to foreign bank, the domestic banking in China will encounter with more furious competition and challenge. Facing such strong rival, how to keep their original share and excellent clients in the market, improve their management level and ability of payoff, and upgrade their own efficiency, which must be answered soon. As a result, it is of great signification both in theory and practice to study this problem.As follows is the main framework. The first chapter is the introduction part, which includes the background and signification of this paper, correlative literatures researched by Chinese and foreign scholars, the major method used during studying this paper, and the innovation and deficiency. The second chapter analyses the common mechanism about the effect of foreign entry on the banking in the host country. Based on the second chapter and considering the actuality of foreign bank in China, the third chapter discusses the effect of foreign entry on our domestic banking. Combined with the above theory analysis, the fourth chapter gives demonstration test with some hypothesis. About the above analysis and its'conclusion, the fifth chapter gives some countermeasures.The major conclusion of this paper is that foreign banks in China pay more attention to their profit and risk, so they will compete or cooperate with our domestic banks through the main resources such as labors, clients and others, which will impact on the performance and risk of our domestic banking. As the innovation, this paper starts with view of such basic factors as labors, clients and others, analyses the effect of foreign entry on our domestic banking systemically from positive and negative sides, and gives demonstration test.