A Study On "Follow The Customer" Effect In The Internationalization Of Chinese Commercial Banks

Since 1980s, internationalization of banks has spread globally. International banks, regional banks and multinational financial institutions have constituted a global financial network. Under the background of hard implementation with"Go Out for Globalization"strategy in China, not only manufacturing enterprises but also banks with necessary financial service should"Go Out for Globalization"."Follow the Customer"is a classic theory to explain the determinants for commercial banks'oversea expansion. A study on bank's internationalization in side of"Follow the Customer"is realistically significant for Chinese commercial banks.This dissertation mainly answers the question that whether"Follow the Customer"effect exist in Chinese commercial banks'internationalization statically and dynamically. Statically, through comparison and analysis of Chinese non-financial enterprises and commercial banks'international management status quo, we find that Chinese commercial banks'oversea loan scale is comparatively small, financial products are not various, regional and industrial structures don't accord with Chinese oversea enterprises, which shows the un-idealness of banks'customer-following service. But dynamically, this dissertation adopts Granger causality test and use Chinese commercial banks'oversea net capital, FDI outflow of China and bilateral trade to empirically test"Follow the Customer"effect. The result shows Chinese commercial banks'recent 20 years'oversea experience supports"Follow the Customer"theory both from non-financial FDI and international trade. At last, this dissertation proposes some suggestions on how Chinese commercial banks internationalize from four parts: global location development, oversea business development, localization and management internationalization.