Research On Foreign Banks Entry Motivation And Influence To Domestic Banks Market

At the end of 2006, financial industry in our country opened completely, According to the relevant agreement of WTO, our country cancelled the restriction of foreign currency business, business permission of RMB to foreign banks. The foreign banks possess citizen's treatment. Up to Dec. 2006, foreign banks business organizations increase to 312 from 190 in China, pick and get rid of an organization merger factor clean increase 122.Total property scale is 8194 hundred million dollars, compare last year the same period increase 29% which is 1700% of 2001, account for 3.23% of the property total amount of the banking financing institution of our country, see for the circumstance of now, the foreign banks have a small share of property and business of domestic bands market, but the foreign bank occupied a prominent position in the banking of many developing countries, especially some Middle East regions, the property of foreign banks in the host country commercial bank occupies almost 70% of the total property which means the trends of the foreign banks become an important pare of the host country bank system is more and more obvious.Under such a development structure, researching the real opponent of domestic banking system——foreign banks, has very important meaning. The entry of foreign banks will become a rigorous challenge to the country banking, only learn about the motivation of the entry of foreign banks and the influence on the domestic banking marketing which the foreign banks will bring into, we then can make adequate preparations, replying calmly.First of all ,this paper analyzes the motivation of foreign banks enter into the host country in theories, namely Internalization Theory, Industry Organization Theory, Location Advantage Theory, International Trade Theory ,International Investment theory and Compromise Theory. Secondly, build diverse line back to return model from the angle of substantial evidence, and selected variable according to the following aspects, such as "follow native customer", "service host country market" and geography position, in the end, we get a conclusion is that the main motivation of the foreign banks gets into our country is to participate our country market economy construction and follow native customers.In the aspect of the influence on the Chinese Banking , this article enters the general effect which the foreign banks produced to developing country , discussed the influence on our banking marketing which the foreign banks have produced, think that the foreign banks could bring domestic banking industry the market competition effect, the technical overflow effect, the human capital effect and the marketability reform effect, simultaneously the entry of foreign banks has the possibility to attack China's banking industry, increased its operational risk, and presented the challenge to the Chinese government's economic control ability. The empirical study mainly concentrates in the influence of profit efficiency and cost efficiency of domestic banking and found that the entry of foreign banks increased the profitability and management costs of domestic commercial banks, "catfish effect" is not obvious.