An Empirical Study To Influence On China's Banking Management Efficiency By Foreign Capital Bank's Entering

The numbers of such bank indexes are largely increasing, including foreign capital bank size, total assets, balance of loans, deposits, etc. Along with the deepening of economic reforming and opening up and financial freedom of China, the entry of foreign capital has vigorously developed. In accordance with the commitments of the WTO, on December 11 2006, China has opened totally the bank door to the foreign capital. There will be not any limit for foreign capital to the place and customers of managing business of RMB. Up to April, 2009, 33 foreign capital banks officially launched as first foreign banks locally incorporated in China, as well as 111 foreign capital branch banks and 235 representative offices. Foreign capital bank non-performing loan was 6.77 billion RMB, and the rate of it was 1.03%. This will have an austere challenge for banking in our country; moreover have a moment effect on finance and economics. Basically, it will be important for economic reforming and healthy banking development to investigate the effect of foreign capital on banking in China and discuss the corresponding strategies.Based on the theoretical research, principles of economics, finance, industrial organization and measure economics are used to research influence on China's banking management efficiency by foreign capital bank's entering. Panel data of 14 leading banks in China in1998– 2007 Periods are used and software Eviews 5.1 are taken to make an empirical analysis on the effects. Comparing with relatively analysis, theory model and empirical analysis, influences are discussed. The purpose of this research is to recognize foreign capital bank entry impact scientifically and objectively in order to enforce foreign capital bank supervision, make strategy and policy as well.