Foreign Entry With Path Dependence Of State-Owned Commercial Banks' Reformation

The paper tries to analyze foreign banks' influence on reformation of the state-owned commercial banks with the path dependence theory of the new constitutional economics. Main content includes six parts:Chapter one is Documents Survey. First part is about P.D.; Second part is about foreign banks.Chapter two is Current Situation Analysis of Foreign Banks in Our Country. In first part we summarize foreign banks' current situation in China. Second part we analyze the influence of foreign banks on state banks with divided it into positive and negative influence.Chapter three is The P.D. in Reformation of State-Owned Commercial Banks. We summarize these mainly from three respects: First, S.B.C. and P.D.; Second, competitiveness and P.D.; third, the finance suppresses and P.D.Chapter four is Foreign Banks with P.D. of State-Owned Bank's in Transition. We described the influence of foreign banks on state-owned commercial banks in transition, and divided it into four parts: First part is their influence on S.B.C; second part is their influence on competitiveness; third part is their influence while suppressing of the finance has been analyzed; finally, it is the empirical analysis of the influence degree of foreign entry on state-owned commercial banks.Chapter five is Foreign Banks and Perfect of Commercial Banks' Supervisory System. In this chapter, we introduce the model make by Diamond in 1989. The conclusion is when foreign banks enter, it is still not enough for simple limitation in capital, the supervisor should also limit interest rate of the deposit at the same time.Chapter six is Policy Recommendations and Enlightenment. We sum up and summarize the full paper.The conclusion is: It is very important that realize the path changes in essence in order to promote the reform of state-owned commercial banks. With the empirical analysis we can draw that only we can cooperate introduce and supervise with each other, foreign banks would as one of exogenous variables to improve the reformation of the state-owned commercial banks.