The Influence And Measurement Of Banking Industry's Opening-up In China

Banking industry's opening-up in China after reform and openness began from 1979. Tokyo Bank was the first foreign bank that built a representative office in China. Then China came to the conclusion that add the service trade to the field of openness in the negotiation of international trade. As the typical example of service trade, banking industry is opening to the foreign banks in more and more fields of operation step by step. At the end of 2006, China fulfilled the rule of WTO,opened its banking industry to the world fully.Many domestical and foreign scholars have had deep research on the topic of banking industry's opening-up. Concerning of the perspectives, some foreign scholars studied the influence of banking industry's opening-up on the host country's banking industry and economy. Some analyzed the influence on the stability of host country's banking industry, but without coincident conclusion. Some results had such a point of view that banking industry's opening-up increased the efficiency and stability of host country's banking industry and promoted the development of its econcmy. Some papers had the converse standpoint. Concerning of the research method, most foreign scholars used the empirical analysis. They analyzed at the base of modeling. In 2006 and two or three years before 2006, domestic scholars started the upsurgence of research on banking industry's opening-up. They forcasted and analyzed the situation of banking industry's opening-up fully through many kinds of methods. The perspectives of analysis included the main factors of banking industry's opening-up, its influence, the measurement of opening-up and so on. Recently, schorlars have paid less attention to this problem. So this dissertation tried to collect the new data to analyze what influence banking industry's opening-up had on domestic banks, and realize the level of banking industry's opening-up in China through comparing with other countries.Firstly, this dissertation stated the connotation and organizational forms of banking industry's opening-up. Secondly, it retrospected the process of banking industry's opening-up in China by five periods, concluding the features of banking industry's opening-up in China at present. The features were that foreign banks increased fast but distrubuting unevenly, foreign banks'forms of establishment presented the trend of a body corporate, the phenomenon of domestic banks'introduction of foreign capital was prevalent, foreign banks'service types were plenty and the jural supervision to foreign banks improved and perfected generally. Thirdly, it expatiated the positive and negtive influences of banking industry's opening-up in China. The positive influences were demonstration effect, catfish effect, attracting capital effect and stability effect. The negtive influences were the decreasing of domestic banks'partial market share, the outflow of talent, the impacting to monetary policy and the dispersing of control power when foreign capital became a shareholder. Fourthly, as another important part of this dissertation, it was the measurement of banking industry's opening-up in China, mainly using the Analytical Hierarchy Process(AHP) to synthesize the indexes of organazitions'quantity, capital and workers to measure the level of banking industry's opening-up in China from 2004 to 2008. The result presented the level of opening-up was increasing. But in 2008, because of financial crisis, the level of opening-up decreased a little. The dissertation compared our country's level of 2006 to 2008 with other countries in the same year. In order to make the result exact, the dissertation choosed to compare with three developing countries as Thailand, Philippines and Russia, concluding that banking industry's opening-up in China was much lower than those countries. At last, the dissertation introduced banking industry's opening-up in Singapore as a successful example. Studying its experience, the dissertation put forward some suggestions for the development in the future of banking industry's opening-up in China. The innovation of the dissertation was using quantitative analysis, besides of qualitative analysis. The dissertation built up a scientific index through synthesizing several indexes by AHP to measure the level of banking industry's opening-up, comparing from transverse and fore-and-aft, which meant comparing with own country in different years and other countries respectively. The dissertation also using the example analysis to analyze the situation of Singapore, getting enlightment to banking industry's opening-up in China.The conclusions this dissertation drew were as follows:Firstly, banking industry's opening-up in China was positive to domestic banks in generally. Even though foreign banks had some negtive influence to domestic banks, they had promoted the competitive power of our country's banking industry to a great degree through demonstration effect, catfish effect, attracting capital effect and stability effect.Secondly, the dissertation calculated the level of banking industry's opening-up in China in the last five years through quantitative analysis, presenting an increasing trend of the level of banking industry's opening-up. But compared with other devoleping countries, the level of banking industry's opening-up in China was still lower. It needed to go on further boosting the opening-up systematically and pay attention to the opening-up to domestic banks simultaneously based on strengthening the supervision.