Internationalization Of Multinational Banks: Theories And Positive Study

Since 1980s, Internationalization of bank has become an increasingly global trend and a lot of multinational banks are emerging. All these global and regional banks, transnational financial institutions have composed a world-wide banking networks. In spacial dimension, more and more countries have been the hosts of multinational banks. Now they are imposing more impacts on those hosts, which has been an important part of the host's banking system. Till the end of 2006, according to the commitment of WTO, China will eliminate most of barriers to foreign banks. Face to competitors at the gate, the Chinese local banks must improve their efficiency so that they can keep the market share. Furthermore, the local banks should enter other countries and sourcing from the global markets. The Chinese banks will gain competitive power By cumulating multinational operating experience. The internationalization of banks are so different from other industries that it's essential to investigate, and it's main aim of writing this paper.As for arrangement of content, chapter 1 mainly concerns "why" the banks internationalizing themselves, and in this chapter the author introduces the mainstream motive theories of international banking. The third chapter discusses the general international process, and "what method" by which the bank enters the host. HSBC's case is used for interpreting the process at the later part of the chapter. Based on finance, management of company and geography, the chapter 4 and 5 are the soul of this paper, because these two parts investigate the international banking from a view of space. In chapter 4 the author analyses the decisive factors of international location selection of transnational banks, the key point is "where" the bank's FDI will flow. As for the reason of choosing Singapore's big three banks, it's mainly cause that Singapore's similarity to China. The chapter 5 separates the bank operations into three categories, retail banking, wholesale banking and private banking. By analyzing the case of Citigroup, the author emphasized the three spatial directions of the three operations. At last, in the sixth chapter, the author points out several conclusions and present some advices for Chinese bank's internationalization.