The Analysis Of The Competitiveness Of China’s Commercial Banks In International Settlement Business With RMB Internationalization

So far, RMB internationalization has achieved initial achievements, it is said wecan use RMB to settlement in cross-border trade, and this kind of settlement hasbeen expanded to all over the country and the world. However RMB still used as acurrency, but under the background of Europe debt crisis has become more and moreserious, as QE2well as the U.S. monetary policy, the advantage of becomethe international currency is increasingly obvious. Payments and settlement systembetween banks is needed to complete the RMB use in the cross-border trade and as areserve currency in the future, as a intermediary department international settlementdepartment combine domestic and foreign settlement together, and it’s competitivewill be directly or indirectly influence by the process of RMB internationalization.This paper on the basis of analyzes the present situation and development trendof RMB internationalization, put diamond model, then comprehensive use theliterature material law, model analysis, comparative research, combining the mainproducts use in current international business, like L/C, collection, T/T, factoring,qualitative analysis the factors which will affect the competitiveness of internationalbusiness in commercial bank. This article combine the theory with practical analyzethe advantage and disadvantage of state-owned commercial bank’s internationalbusiness competitive under the background of RMB internationalization, and on thisfoundation, from government and bank propose some suggestions which is good forpromoting competitiveness of international business in commercial bank.The article divides into five parts to elaborate:The first part is introduction, in this part we introduces the article to choose abackground, the purpose and significance of research, at home and abroad researchreviewed, diamond model theory and the possible of the innovation. Mainly discussMichael porter’s diamond model, then the contact between four basic factors and twoforeign elements, which will affect the competitive of a industry. This is a foundation for following article use the diamond model to analysis the competitiveness ofinternational business in state-owned commercial bank.The second part of the paper elaborates the present situation and developmenttrend of RMB internationalization. Focuses on the2009for the first time RMBrealize the cross-border trade settlement; some issue in the RMB cross-border tradesettlement, Hong Kong financial market and RMB offshore backflow mechanism,thus put forward reasonable opinion for development trend of RMB.The third part is the diamond model analysis. Human resources and basiccommunication facilities are used as production factor analysis, development ofinternational trade, international investment, international cooperation are used asdemand condition analysis, state-owned bank loan amount and their own operatingresults are used as support industry analysis, the performance of foreign banks andthe joint-stock banks after RMB realize cross-border settlement are used ascompetitor analysis. Use the RMB cross-border settlement and Hong Kong offshoremarket established as the opportunity, combined with the interest rate, the exchangerate policy, put a complete diamond model analysis on international settlementbusiness in state-owned commercial bank.The fourth part discusses the influence for main settlement method after RMBinternationalization. Take L/C, collection, T/T, factoring as examples, the paperdiscusses the deficiencies in current business and possible impacts of RMBinternationalization.The fifth part is the conclusion. On the ground of above analysis, from thegovernment and bank two angles, puts forward some relevant policy advice forinternational settlement business in state-owned commercial bank, especially how toimprove the self-competitiveness under the trend of RMB internationalization trend.