A Research On Cross-border Operations Of Commercial Banks: The Theory, Situation, Path And Risk Control

At present, China’s commercial banks are at a critical point of the way from separateoperation to integrated operation. In this period, cross-border business activities are frequent.Under the "separate operation, separate supervision" system, how to control the risk isbecoming a very urgent research topic.With above-mentioned background, on the basis of functional perspective、evolutionaryfinance and the logic of market, in the way combined the comparative analysis, systemsanalysis, theoretical analysis and empirical analysis makes a comprehensive analysis and deepresearch on cross-border business activities of commercial banks.The paper includes seven chapters. The first chapter is a summary of the background,significance and innovations of the research. The second chapter defines the related conceptsabout the cross-border business, and introduce the functional perspective、evolutionaryfinance and the logic of market theory, and analyzes the influence of the cross-borderoperations t to real economy. In the third chapter, based on comparison between domestic andforeign commercial banks, a thorough reform and innovation of the domestic banking systemis recommended. The fourth chapter introduces the commercial banks’ different models ofcross-border business, and presents the proper arrangement of cross-border order. The fifthchapter deals with necessity of setting up different "fire wall" to block the cross-borderbusiness risks. The sixth chapter suggests a "three-step" strategy to establish an active,flexible, comprehensive external risk control system. The seven chapter is the conclusion.The fundamental viewpoints include:：1. The cross-border business is a dynamic process. It is undoubtedly limited just to makea static analysis about cross-border business.2. The independence of financial institutions makes financial efficiency3. Commercial banks make cross-border operations for development. The marketdemand is the second reason.4. The incompatibility between regulatory regime and the reality is prominent. In orderto solve this problem, the current regulatory system has to be reformed.5. At present, commercial banks operate cross-border business is mainly based on thetwo levels of " capital "and "contract ". 6. The internal risk control is a systematic project. In the future, the internal risk controlsystem should set up different "firewall" to block the risks of cross-border business.7. Learning the experience from developed countries, this paper presents a "three-step"reform strategy.