Foreign Bank Entry's Impacts On The Chinese Bank And Relative Competitive Strategies

According on analyzing current competitive situation between foreign and domestic bank , the author points out the positive and negative impacts caused by foreign bank' s entry on Chinese banks. Based on analysis, the author summarized reasonable development strategies for domestic banks which aim to meet the tough competition from foreign banks. The thesis focuses on analyzing current competitive situations and difficulties faced by domestic banks and making some possible suggestions for domestic banks. In past five years, because of fast growing economy and soft monetary policy, Chinese banking industry kept quickly grow rate. However domestic banks still had many problems, like poor quality of assets, high management risk, and weak risk controlling system ect. How domestic banks can properly treat the historical problems and actively meet the competitions from foreign banks are very important issues faced by domestic banking industry. If Chinese banks can not solve relative issues correctly, it will not only block their development but also will damage the healthiness of Chinese economy. The author uses comparison method, based on the analysis, makes some recommendations on Chinese banks development strategies in near future.