Development Of Cross-Border RMB Business Of Commercial Banks Under RMB Internationalization

With the development of global economic integration, the scale of foreign trade becomes larger, value of RMB keeps more stable, comprehensive national power rises faster. More and more scholars have adopted positive attitude toward RMB internationalization. With the continuous deepening of RMB internationalization, Commercial banks are facing a brand new business-RMB cross-border business. Based on studies of the present situation and development of RMB cross border factors, the paper demonstrated that cross-border RMB business has economy of scope. The paper takes Shanghai Pudong Development Bank as an example, through the analysis of five year’s practice of RMB cross-border business, reveal the problems and causes encountered in the development of the business, and finally through the six aspects of policy recommendations, to illustrate how the commercial banks to create conditions for the development of RMB cross-border business, and to obtain the first mover advantage, improve core competitiveness.This paper is divided into six parts:the first chapter:introduction. This chapter first introduces the domestic and foreign literatures and the mainstream view, summarizes and reviews the existing literature, describes the background, and clarifies the research significance, research content and research methods. The second chapter:Current status of RMB internationalization. Through a large number of data and from several aspects, this chapter introduces the present situation of RMB internationalization. The third chapter:Favorable and restricting factors for internationalization of RMB. This chapter elaborates the impact of RMB internationalization from promoting and hindering factors. The fourth chapter is the theoretical basis of the development of commercial banks for cross-border RMB business. This chapter constructs the cost function of commercial banks, through the analysis of capital cost and labor cost, demonstrates that the development of RMB cross-border business is a range of economic advantages. The fifth chapter:Business opportunities of commercial banks in the internationalization of RMB -- Shanghai Pudong Development Bank as an example. Using the business data of Shanghai Pudong Development Bank, this chapter analyzes the business development in recent years and the impact of RMB cross-border business. Then through the introduction of three products, the paper elaborates the innovation and development of RMB cross-border business, analyzes the main problems in the development process of the business, points out the reasons from 7 aspects, and puts forward countermeasures for the next chapter foreshadowed. The sixth chapter:policy recommendations on promotion of RMB cross-border business. Based on the current conditions, this chapter is trying to propose how commercial banks create conditions for better and faster RMB cross-border business, meanwhile put forward the countermeasure and thinking from six aspects. The seventh chapter:conclusion. This chapter is the summary of the thesis. This chapter clears the conclusion and limitation of the paper, also points out the future problems and the direction of further study.