Study On RMB Internationalization And The Going Out Of Chinese Banks

After 30 years of reform and development,China's economic power and comprehensive national strength,especially in the global economic and financial integration of the background,the internationalization of RMB is the trend.In 2009,China promulgated the "Measures for the Administration of Pilot RMB Transactions on Cross-border Trade",which officially opened the road of RMB internationalization.With the RMB cross-border trade,the scale of investment continues to expand,China is already the world's second largest trade finance currency,the fourth largest payment settlement currency and the ninth largest foreign exchange currency,which shows that the RMB internationalization process is accelerating in the international currency System.The Third Plenary Session of the Eighth Central Committee of the Communist Party of China made it clear that "perfecting the market mechanism of RMB exchange rate,orderly increasing the convertibility of cross-border capital and financial transactions,and speeding up the convertibility of RMB capital projects."Under the effective promotion of domestic policies,RMB internationalization will rise to a new high speed.As the main carrier of RMB internationalization,Chinese banks take on more responsibility."Going out" strategy as China's basic national policy of opening up an important part,emphasized that overseas development of Chinese enterprises and institutions.Chinese banks go out along with Chinese enterprises "going out".Especially the large commercial banks,because of their scale and other advantages,policy and technology,compared to other banking institutions,earlier began to explore overseas,pay more attention to cross-border RMB business,which supports the country's foreign economic and trade exchanges have played an important effect,boosting the process of internationalization of the RMB.Currently,Chinese banks have been completed in the major world financial layout,the basic coverage of foreign institutions in Asia,Europe,North America,Latin America and Oceania,the global network of the prototype is formed."One belt,one road,strategy is the current and future general program of opening up,many involving open economic new system construction problems,will be gradually implemented in this strategic framework.On the surface,the "One belt,one road" strategy is mainly based on trade and investment,but it is essentially a financial problem,because there is no efficient financial intermediation and financial services,"One belt,one road' strategy is difficult to have achievements in trade and investment.Therefore,the "One belt,one road" strategy is to expand the use of RMB,to promote Chinese banks "going out" and enhance the internationalization of the RMB.Whether it is internationalization of RMB or Chinese banks to "go out",can not be separated from the financial problem,and can be said that the RMB internationalization and Chinese banks "going out" is symbiotic and mutual influence.The internationalization of RMB has promoted the "going out" of Chinese banks,and the "going out" of Chinese banks has a positive feedback effect on RMB internationalization.How to make the two interact,namely to promote the process of internationalization of the RMB in Chinese banks to "go out",and in Chinese banks"going out" in the process of boosting the internationalization of RMB,is very important,especially in the "One belt,one road".This is also the original intention of this paper.This paper mainly studies the following aspects:Firstly,the internationalization of money and the banking industry "going out"theory and development.At present,the internationalization of money has formed a relatively complete theoretical framework.Through the collection and analysis of the existing literature,it is found that the internationalization of money is based on the theories of William Petty,Adam Smith,Karl Marx,Say.Jean Baptiste.Then the economists began to study the issue of monetary internationalization and so on.It also made the internationalization of money gradually from theory to theory,and promoted the formation and development of the theory of optimal currency area and currency substitution..In comparison,the theory of "going out" or the internationalization of banks has a relatively wide range,and has not formed a more systematic theoretical framework.Related theories include internationalization theory,trade-guided theory and investment Guided theory,and the theory of exclusive advantage,internalization theory and so on.Although the concept of monetary internationalization and banking internationalization are different,but belong to the financial category,they are complementary,but in the past more research is to separate the two separate study,which also resulted in the study of the internationalization of the banking industry and banking "going out".Therefore,after analyzing the related theories of the two theories,the paper summarizes the two literature and points out the shortages.Secondly,it analyzes the internationalization of RMB and the status and problems of Chinese banks going out.First,the meaning of RMB internationalization,status and motivation.This paper argues that in order to continue to promote economic globalization and safeguard the stable growth of the world and China's economy,the internationalization of the RMB is needed,which is a realistic need of the domestic and international environment.From the start of the internationalization of the RMB to the present,the RMB internationalization of the road has gone about six years,RMB cross-border trade settlement and investment and financing regulations continue to expand,offshore RMB market has also been further developed,more and more countries and enterprises treat the RMB as one of the main choice of the trading currency.With the farther improvement of China's open economy,the RMB internationalization infrastructure will be further improved,the scope of cross-border use will be further expanded,the cross-border investment and financing channels will be further widened and the pace of international monetary cooperation to be further accelerated.Second,Chinese banks "going out" status,characteristics and problems.In recent years,China's enterprises "going out" to accelerate the pace,but also speed up the Chinese banks "going out" speed.On the whole,the "going out"of Chinese-funded banks has the following characteristics:First,the pace of "going out" has obviously accelerated;secondly,the coverage area has been expanding,showing the transition trend to emerging economies;4,Bank of China and Industrial and Commercial Bank of China is still the main force of Chinese banks "going out";Fifthly,Hong Kong has always been a "going out" bridgehead.However,Chinese banks will face a variety of problems and challenges,such as the relative concentration of overseas outlets,the lack of diversification of financial products and services,in addition to market risks,legal compliance Risk,political and security risks,and cultural risk,and so on.The third part is the empirical research on the interactive relationship between RMB internationalization and Chinese banks "going out".Firstly,The effect of Internationalization of RMB on Chinese Banks "going out".The development of the international functions of the RMB has not only led to the expansion of market of Chinese banks,but also forced the Chinese banks to upgrade their comparative advantages.Second,Chinese banks "going out" promotes the internationalization of the RMB.The "going out" of Chinese banks has a positive effect on the internationalization of RMB,which is reflected in the expansion of the geographical distribution of Chinese banks' overseas institutions,providing the convenience of RMB settlement payment for trade and investment.In addition,Chinese banks continue to innovate trading instruments and financial products to provide value-added and return channels for the RMB to help the RMB internationalization.Therefore,to explore the relationship between RMB internationalization and Chinese banks' "going out",this paper uses the panel data of state-owned commercial banks to make an empirical estimate of the two-way transmission mechanism between the two.The results show that Chinese banks "going out" has positive effect on the internationalization of RMB,but some variables of Chinese banks have the effect of restricting the internationalization of RMB.The internationalization of RMB has a positive effect on the Chinese banks "going out",but some variables of RMB internationalization have negative effects on Chinese banks "going out",such as RMB exchange rate.Finally,the internationalization of RMB and the "going out" of Chinese banks support each other,and RMB internationalization has created favorable conditions for Chinese banks "going out",such as opening up new business markets and forcing the reform and opening up of the domestic financial system,enhance the ability of Chinese bank "going out".Fourthly,the paper discusses the influence of the strategy of "One belt,one road"strategy,which includes a wide range of financial services,while the internationalization of the RMB to pave the way.In addition,"One belt,one road"strategy will lead to the expansion of the trade market of China,changing foreign trade by the traditional situation in Europe and America market constraints.Overall,"One belt,one road" strategy will help the internationalization of RMB for Chinese banks to carry out RMB-related business conditions.