Research On “Follow The Customer” Effect In The Internationalization Of Chinese Commercial Banks

Since the 1980 s,speed of financial globalization is obviously accelerating due to deregulation of the financial system control and financial liberalization policy.Commercial banks all over the world build branches in other countries and achieve mutual communication in the aspect organization,development of bank expansion abroad has become an important performance and content.Commercial banks have entered a golden period of rapid development,many commercial banks are making plans to expand abroad,expansion abroad is quietly rising.With the rapid development of financial liberalization and economic globalization,the linkage in the international financial market around the whole world is growing.The strategy "Go Out for Globalization" in China bore fruit,not only manufacturing enterprises but also banks with necessary financial service should "Go Out for Globalization".With the pattern of global banking changes,Commercial banks in China should seize the opportunity to meet the requirements of the times,start to go abroad as their development strategy,Increase the process of internationalization,enhance the international competitive strength,to create a blueprint for the internationalization of China's banking industry."Follow the customer" theory is one of the most widely accepted theories in the multinational business philosophy of commercial banks,it is of great practical significance to explore the internationalization of commercial banks from this theoretical perspective to accelerate China's banking industry towards globalization.First of all,start with the theoretical analysis of the bank's international management.And focuses on the theoretical hypothesis that the comparative advantage theory,the guiding effect hypothesis,the internalization theory and the international production eclectic theory which are widely accepted in academia.After that use the "follow the customer" theory as the starting point for empirical analysis.Then this article is more targeted at the current internationalization of China's commercial banks and the current situation of "follow the customer" model as a comprehensive description and analysis.On the current stage,the overseas expansion of Chinese commercial banks is based on the overseas operation of enterprises.But compared with the development status of commercial bank in the developed countries such as the United States,Japan and Europe,we found that China's commercial banks overseas institutions exist many problems.Such as the financial products is single,the loans scale is also small and the problem in the regional and industry bias of "follow the customer" and other issues.Which indicating that China's commercial banks on the follow-up effect of foreign enterprises is not ideal.In the aspect of empirical analysis,this paper use the three representative data:China's commercial banks overseas net assets,China's foreign direct investment and bilateral trade volume,adopts Granger causality test and Error correction model to empirically test "Follow the Customer effect".The result shows that China's foreign direct investment and bilateral trade volume are the reasons for the change of net assets of China's commercial banks,which exist a long-term equilibrium relationship.On the contrary,it is not established.That is,China's commercial banks overseas development accort with the "follow the customer" theory but not perfect.It has not yet reached the second stage of "guiding customers".This is also matched with the extent of the current process of internationalization of China's commercial banks.Although in the short term,the impact of foreign direct investment in China's overseas net assets will deviate from the level of equilibrium,the corrected speed is fast.Maintain a balanced situation in the long term.Finally on the basis of empirical analysis,by drawing lessons from the internationalization development path and development model of the commercial banks in the United States,Japan and Europe,making a suggestion for internationalization of commercial banks in China which is in line with China's national conditions.