Research On China Banking Industry's Operation Mode In The Post WTO Era

According to WTO agreements, China will begin to lift the restrictions on foreign-funded banks, granting national treatment to them. Financial industry comes into a totally open era, meanwhile, domestic banking industry will be confronted with tough competitions. With regional and business restrictions lifted, foreign-funded banks will give full play to its advantages, competing for shares in China's financial markets. In the face of foreign-funded banks'advanced technology, first-class products, and rich management experience, China-funded banks, having felt increasing sense of crises, must narrow the gap and enhance the efficiency of fund allocation as soon as possible. The core of this paper, therefore, is how China's banking industry,in fierce competition with foreign-funded banks, reforms to stand in the invincible position.Chapter 1 takes the background of domestic and foreign banking industry's operation modes change as breakthrough, paves the way for our banking industry's transition into comprehensive operation, in view of the operation mode change of banking industry in western developed countries; and also combined with basic situation of our country's banking industry, it deeply summarizes domestic and foreign scholars'theoretical surveys in this area in recent years, puts forward that comprehensive operation is the general trend in the post-WTO era, and the trend is increasingly fierce; in the end, it puts forward the paper's study method and innovative points.Chapter 2, through relevant analysis of economic theories, provides theoretical support for the reasonableness of comprehensive operation of our banking industry, makes the clear-cut demarcation between separated operation and comprehensive operation, and presents their respective advantages. Then it analyzes, combined with our country's national conditions, our country's banking industry at the present stage, and deems that to perform comprehensive operation now is reasonable.Chapter 3, taking the post-WTO era as background, points out that in the face of foreign-funded banks'challenge, huge external pressure urges our banking industry to improve its own competitive power as soon as possible, and our banking industry is facing potential reform chance—to change into comprehensive operation mode. This chapter gives prominence to thereform motives of our banking industry's operation mode. The rise of capital market and the reform of domestic financial system, definitely push forward the establishment of operation mode by our banking industry that can improve the operational efficiency, i.e., to follow the world mainstream trend—take the road of comprehensive operation.Chapter 4, through econometric model, analyzes that there is positive correlation among banking industry, security industry and insurance industry. It points out that our banking industry's taking the road of comprehensive operation has feasibility.The last chapter explores the path of our banking industry performing comprehensive operation, begins to analyzes with our banking industry's single, specialized business to point out that, combined with our country's financial system and fundamental national conditions at the present stage, our banking industry should select the form of financial holding company of U.S style to gradually realize the transition of operation mode,and all-dimensionally design the framework of financial holding company with Chinese characteristics.