Research On The Relationship Between FDI And Operating Risk Of Our Commercial Banks

With China accession to World Trade Organization (WTO), with China taking part in the economy globalization, China is becoming the "manufacturing center of the world" day by day. Suzhou City, as for its special geography situation and especial environment, attracts a great deal of Foreign Direct Investment (FDI). The thesis sets out from the relationship between FDI and our commercial banks, to explore the risks, to discuss the reasons, to resolve the problems.The dissertation represents the credit risk, market risk and the competition risks of local banks, related to FDI. Then, it discusses the reasons of those mentioned risks, which including the information asymmetry between FDI and our commercial banks, and the information asymmetry among local banks. Furthermore, the dissertation discloses the inherent limitation of our commercial banks, such as lack of risk consciousness. After that, the dissertation offers some resolutions on these problems, including to enhance the information disclosure, to strengthen the information communication so as to debase the information asymmetry in credit market; also including to adopt different resolutions on different FDI firms, to consolidate the Internal Rating System of our commercial banks, to establish the Integrated Risk Management; also including the resolutions to accelerate the collaboration of local banks. At last, the dissertation put forward the aim of our commercial banks, which is to develop with FDI firms harmoniously.