Research On Transnational Banking Risk Management Of Huaxia Bank

Recently, more and more Chinese commercial banks have adopted the policies of ’go to outside world’,and engaged in the transnational banking business. Under the circumstances of economic globalization, it has a tremendous significance for Chinese banks to expand business internationally. Yet because of the restriction of the supervisory regulations, lack of experience, undeveloped technology, lack of talents and the big differences between the inner regulations and the international standard, Chinese banks till face a series of risks in internationalization. With the development of the transnational management of the commercial banks, they will establish more and more business relations with foreign banks or more and more branches will be set outside China, together with more and more risks will emerge during the process. The foreign exchange position will be more exposed to the market and the banks have to bear much more risks of the fluctuation of exchange rate; and the inner control regulations of the commercial banks will suffer new challenges in transnational managing, and the operating risks will be exaggerated ever than before. So how to eliminate the risks and keep a steady growth will be an important issue in transnational management for all the commercial banks going outside China.Based on this principal, the article focuses the research on Huaxia bank. Firstly, the background\purpose\content\structure\method of the article are clarified. Secondly, a brief introduction and a general summary of the basic theories of banking internationalization and risks management are introduced. Thirdly, with the method of PEST,, the article analysis the characteristics and opportunities that Chinese banks have to face for going outside, by introducing and summarizing the current status of the internationalization of the commercial banks, which generating with the development of Chinese economy and the globalization of the whole world.. Fourthly, the method of SWOT analysis is adopted to discuss the strengths and weaknesses of Huaxia bank on transnational banking and how to eliminate all kinds of risks in the process of internationalization of the bank. Fifthly, the strategies and methods used in eliminating the risks in transnational banking are introduced, with the example of Citibank, which is a global bank famous for its internationalization, and some advices have been listed here to Huaxia bank on learning from Citibank for transnational banking. Lastly, the article offers some suggestions for Huaxia bank for their transnational banking. The strategy of internationalization adopted by Huaxia bank shall be in consistent with the general planning and positioning of the bank and it can only go step by step, A basket of methods such as establishing-new-branches and acquisition&merging may be taken into account in the process of internationalization. At the same time, the principles and strategies of the bank shall be adjusted quickly according to the need of market and customers, and a basket of effective strategies and useful methods on risk-prevention shall be adopted to face the opportunities and challenges of the transnational banking by Huaxia bank.