Study On The Relationship Between Foreign Capital Infusion And The Development Of Chinese Shared Commereial Banks's Efficiency

After China's entering into WTO and the implementation of the open policy in the banking industry, Chinese banking industry has experienced a chain of changes, including the foreign capital into domestic banks. Chinese shared commercial banks, as a banking groups of smaller scale and the higher the degree of openness, foreign investment for their development is a good opportunity. At the very beginning, the paper concentrates on the status of foreign capital into domestic banks. Then research on the specific impact of foreign capital infusion on efficiency of Chinese shared commercial banks. In the forth part of the paper, I establish the input/output evaluation system by DEA to analyze the effieiency of several shared commercial banks. After suffieient comparison,we can naturally come to the conclusion that the effieiency of these banks is generally improved. The final part focuses on how to make use of foreign investment to improve the efficiency of Chinese shared commercial banks and make recommendations to prevent the problem that the foreign capital infusion may lead to.