Influence And Countermeasures On Chinese Foreign Banks To Enter The Banking Sector

With China formally joined the WTO, the banking industry, like other industries havealso been fully opened. The actual situation on the past, the entry of foreign banksoperating efficiency and financial innovation for local banks is helpful. For China, theentry of foreign banks to allow domestic banks while facing opportunities and challenges.First, the entry of foreign banks in the banking industry for the management level,innovation and the development of financial markets and improve financial play a catalyticrole in domestic banks to accelerate the pace of integration with the World Bank. Secondly,with the increase of foreign banks, domestic banks face more intense competition.Currently asset mismanagement and lack of funds is one of many ills prevalent domesticbanks, foreign bank entry at this time will make these banks more difficult situation. Inaddition, the entry of foreign banks in the country for anti-risk ability of the bankingsystem is a huge challenge. With the gradual opening of the domestic financial market,foreign banks to become more familiar with China’s financial and economic environmentand understand that competition from foreign banks and domestic banks becomeincreasingly intense, and gradually reflect some of the new features previously unavailable.Through empirical analysis, for the entry of foreign banks in the safety and soundnessof the type, profitability, ability to resist risks, operational efficiency and other aspects ofthe impact caused by domestic banks and conduct investigations and analyzes of foreignand domestic banks own strengths and inadequate and causes, based on this proposed dealwith foreign banks to enter the domestic banking strategy. In the case of a large number offoreign banks into the domestic banks on the one hand to recognize their own strengths,but we also need to see the advantages of foreign banks, found its own deficiencies.Domestic banks from themselves, improve their own quality, play to their strengths, andstrive to make the competitive environment favorable towards his direction, the correcttreatment to compete with foreign banks, foreign bank entry so as to realize maximumbenefits brought. To the moment banks and foreign banks competing against, it isnecessary to accelerate the pace of financial innovation, improve financial services,in-depth exploration business model, the correct treatment of changes in the externalenvironment, intensify reform and innovation, and actively build the core competitivenessforce.