Research On The Entry Of Foreign Bank And The Countermeasures Of Chinese Banking

The entry of foreign banks results from open economy and it is an irreversible historic tendency. With the development of opening policy and reform of economy and finance in China, foreign banks expand their business step by step and take more and more important place in Chinese financial system. That entry is a rapier. On the positive, firstly it would develop and improve Chinese financial market. Secondly it would improve the management and administration. Thirdly it would improve the management and administration of Chinese banking. Finally it would help the Chinese banking to compete in the world. On the passive side, it would challenge and lash Chinese banking seriously. The huge bad asset and the poor capital fund in Chinese banks would not only weaken their competition ability but also harm their system safety. Through comparing the management of both Chinese and foreign banks in Shenzhen district, this article points out the inferior position of Chinese banks and puts out a new thought to commit the entry of foreign bank: improving the banking constructing the competition and cooperation with foreign banks to create a good outsider surrounding for the development of both Chinese and foreign banks. The win-win of both Chinese and foreign banks, the innovation of business institution and administration internal banking would support the development and advancement ofnational economy.Through the integration of theory with practice, this article takes notice not only the reality in China but the new tendency of banks internationalizing. On the train of thought, this article analyses the effects of foreign bank entry and its reason, at the same time, points out the methods of promoting core competition of Chinese banks, which is meaningful not only to the stable running of banking system but also to the economy safety, politics and society stability.