The Research On The Development Status And Countermeasures Of China’s Commercial Banks Cross-border RMB Business

As the process of China RMB internationalization and accelerating the "Going Out" strategy is increasingly deepening, as one of the most important ring, cross-border RMB business from establishing pilot to covering the whole country has entered the fifth year, whether in geographical breadth and depth of the industry involved in the field of diversity, or other aspects, it has entered a new stage.Commercial banks, as a main role of the cross-border RMB business, whose business appears a substantial growth in recent years, no matter in the settlement amount or in the related products marketing. However, the high-speed development parallels some new problems and difficulties to be resolved, which not only caused the banking industry’s attention, but also has been widely concerned with other related parties. This paper, in view of the above reasons, reviews the reason and the process of cross-border RMB business development of comprehensively from the angle of commercial banks. It mainly summarizes and analyzes the difficulties in practice and internal and external causes which produce these difficulties. This article accordingly puts forward some operable measures for commercial banks to overcome difficulties, and provides a reliable theoretical basis and decision-making reference in present stage for the policy adjustment.This paper consists of six parts. After the introduction of the writing background and significance, research methods and ideas this paper not only reviews and assesses the relevant domestic and foreign research literature but also retrospects the relevant theories and polices. On the basis of that, this paper summarizes the commercial bank cross-border RMB business product classification, the similarities and differences between this business and the traditional international settlement business and the risk analysis. This paper then describes the current situation of the business including:total business growth, overseas regional expansion, complete system of products, uneven development between banks, the business under capital account grows faster than the current account. In addition, through comparison of current development of the Agricultural Bank and China Merchants Bank, this paper deduces two different development models. On the basis of description of current situation and development model, this paper further summarizes many problems and bottlenecks from customers, products, technology and risk management, etc encountered in the business development process, and analyze the reasons behind these problems arising. This paper therefore proposes five measures and innovative ideas including customers, liquidation basis, products, risk control, team building to solve the above problems. The last part concludes the paper and points out the shortcomings, and put forward the prospect of the future direction of the business and trends.Through a detailed and comprehensive analysis of six chapters, this paper ultimately concludes:After a series of policies on cross-border RMB being promulgated, a considerable number of China’s commercial banks have their own competitive advantages, good overall development, and great potential for future prospects. But the deviation due to their limitations and business philosophy brings about many difficult problems in business development process. And the difficulty of controlling risks also cannot be underestimated. China’s commercial banks must act according to their own situation, in the relevant policy guidance, find out the crux of the problems, and actively seek practical countermeasures in order to lay a solid foundation for further development, and to provide a better financial plat form for truly "Going Out".