Study On Development Strategies Of Chinese Commercial Bank's Internationalization

As a live organization, growth is target of commercial bank's operation and management. Almost every bank has a dream of growing a lively and strongly transnational bank group from an unknown and small bank. Today, with the level of economic globalization deepening and the tendency of financial globalization making clearer, grown-up Chinese commercial bank also has this dream and come true. Strategy of development which plays a direction-oriented role is critical. So formulating internationalization strategy including focal point of region and business and stock-holders is important work for Chinese commercial bank.Bank'internationalized development refers to the process from seal to opening, and it includes two aspects of meanings: one is opening up domestic banking market for foreign competition, and another is for domestic bank to expand overseas. In view of strategy'characters of long-term and overall situation, strategy of internationalized development can be divided into five strategies: institution internationalization strategy, stock-holder internationalization strategy, business internationalization strategy and management internationalization strategy as well as talent internationalization strategy.The object of study is Chinese commercial banks. The data comes from the main commercial bank including the big four state-holding commercial banks, stock-holding commercial banks according to its importance in Chinese financial system. The amount of main commercial bank's assets accounts for sixty and seven percent of the whole Chinese commercial bank system.After defining the content and object of study, the dissertation sets up these main points of demonstration: to appraise the trend of Chinese commercial bank's internationalization and seek the reason and harmful consequences, and to do feasibility study of adjusting and prompting internationalization strategy, and to formulate strategy of institution internationalization, stock-holder internationalization, business internationalization and management internationalization as well as talent internationalization.The following questions are addressed and answered: (1) what is the current situation on internationalization strategy, and what and is the developing trend and why does cause this trend. Is it necessary to adjust the development strategy again, and whether is it feasible or not. How does the strategy of institution internationalization push? Which kind of method is more reasonable and how is overseas regional layout implemented? What method should be selected to realize share-holder internationalization, and choose the best way, at the same time, which standard and principle should be complied with? How to realize management and talent?With Chinese commercial bank's development of internationalization, the study focuses on the developing study, that is, the procedure prompting development strategy from stepping into internationalization to finally realizing internationalization.Firstly, combining the current situation of opening with international development, the performance of present internationalization strategy is discussed and the sources and harmful consequences resulting from open-oriented strategy are disclosed, and analyze necessity and feasibility of adjusting internationalized equilibrium development between opening and overseas and expansion as well as the promoting strategy of internationalization on institution, business and share-holders.Secondly, bank internationalization is composed of institutions, share-holders, business, management and talents internationalization. The reasonable way is choose to realize institution internationalization according to the current situation of Chinese bank and international experience. When Chinese commercial bank is considering expanding its organizations, it can adopt M&A to realize global layout.Thirdly, share-holder internationalization shows the deeper meaning of bank internationalization. Importing overseas strategic investors is the effective way because of some Chinese banks'success after introducing overseas strategic investors. There are many principles must be comply with for those Chinese banks which plan to overseas strategic investors, for example, strategic introduction principle, non-relating principle, mutual compensation principle and so on. At the same time, there are many problems must be considered when attracting overseas funds. Introducing overseas strategic investors is effective but not sole method, so Chinese commercial bank has much space to push share-holder internationalization strategy.Fourthly, business internationalization is necessary bank internationalization. For Chinese commercial bank, business internationalization includes not only the raise of international business but also the adjustment of business structure according to the change of global client's needs. Therefore, the core of Chinese commercial business internationalization strategy is composed of retail banking building, implementation of comprehensive operation and transnational business and customer's localization. Fifthly, as two important parts of internationalization development, management andtalent internationalization are the vital guarantee for bank internationalization. Chinese commercial bank must set up reasonable frames of internationalized management, realize risk management level and formulate flexible income system, reserving internationalized talent.Sixthly, all of strategies mentioned above are not isolated but intrinsic related. The premises of intrinsic relations are commercial bank reform and development deepening and the authorities offer beneficial policy environment.