An Empirical Study Of Foreign Strategic Investors' Impact On Chinese Commercial Banks

Commercial banks are the core of the entire financial industry, and play a key role in promoting economic development and maintaining social stability. The introduction of foreign strategic investors has become an important means for commercial banks to deepen reform and improve performance and management capabilities. The range extends from the first city commercial banks, joint-stock commercial banks to state-owned commercial banks.Accompanying the introduction of foreign strategic investors, the discussion over the need of introduction of foreign strategic investors gradually expands. In fact the issue of introduction of foreign strategic investors has different opinions and the academic community has caused extensive debate. Some scholars believe that the introduction of foreign investors is necessary for financial reform and financial opening-up. Some scholars think we should not have too much blind faith in foreign investment which would endanger the country's financial security and sell state-owned shares at a lower price. Different from arguments with the existing literature, this paper conducts an empirical study of foreign strategic investors'impact on Chinese commercial banks.This paper first of all reviews a variety of theories and literature about the introduction of foreign strategic investors. Secondly, using descriptive statistical method analyzes the changes of banks relevant indicators longitudinally and horizontally, and then focus study of various factors on the performance of banks by use of median regression. Finally draw a conclusion:the introduction of foreign strategic investors enhances business performance, enriches the level of capital, improves ability to resist risks and lowers non-performing loan ratio. In the last section, take the Bank of China as an example.The results obtain some enlightenment:(1)Now that foreign strategic investors can enhance performance of Chinese banks and play an active role in risk control, so Chinese banks can introduce foreign investment scientifically.(2)In cooperation, foreign banks and Chinese banks have different starting point, foreign banks give more consideration to the profit margins, while the domestic banks is to enhance the international competitiveness, so it is an important procedure to strengthen communication and coordination with foreign strategic investors.(3)Combine "going global" and "bringing in " strategy.(4)In the course of introduction of foreign capital and management, pay attention to digestion and absorption, constantly improve and become truly able to learn business.(5)Actively cultivate domestic strategic investors.