On Introducing Foreign Investment Effect Of China's Commercial Banks

With the financial globalization and economic transition of China, foreign banks' entry into China is an inevitable trend, and the way they most choose is to participate in the Commercial Bank in China. At first, foreign capital participate in shareholding commercial banks and city commercial banks, then gradually in state-owned commercial bank. The contribution ratio become larger than before, some even up to 20%, which is the upper limit. Previously it is used that one foreign bank participate in one commercial bank of China, but now turn to many foreign banks together. Think of efficiency, what's the influence of foreign capital infusion to China's banking system? So it is helpful to the related finance organization and management to do some work on this problem.After the review of some theories-Institutional Change theory and Corporate Merger and Acquisition theory, this paper analyze the current situation of foreign capital infusion in our country. And choose some financial index of five state-owned commercial banks and five shareholding commercial banks, in the perspective of profitability,income levels and cost control. This paper come to a conclusion: there is a little large influence in the efficiency of the commercial banks after they introduction foreign shareholder, because it has a positive effect on the pre-tax yields,net interest income rate and assets ratio.