The Research On Market Access Of Chinese Banking Industry

The history that Chinese banking industry introduced into the foreign capital is not long. After joining WTO in 2001, the scale and speed of the access of foreign bank are all speeding up. On December 11, 2006, the foreign banks can operate RMB business to the Chinese citizens in China. Since then, the foreign banks can enjoy national treatment. This is the beginning of the full open of Chinese banking industry. In the context of financial liberalization and globalization, the acceleration of foreign banks' entrance brings a huge influence to the Chinese banking industry. How to supervise the market access of foreign banks effectively is the most important issue. At the same time of opening up, the government allowed private banks enter in financial industry. The discussion about the market access of private banks began to be concerned in 2002. In the market access of Chinese banking industry, there are still many inadequate in the legal system and the supervision practice. From the perspective of foreign banks and private banks, this article studies the market access of Chinese banking industry, and proposes the suggestions of further improving.In the content, this paper first describes the correlative theory of market access, defines the market access of foreign banks and private banks, then analyses how the market access influents performance of Chinese banking industry. Then, drawing the experience and the lesson of the market access of the United States, Taiwan and Canada and viewing the realities in China, we propose the corresponding measure to improve the shortage. The most important is to analyze innovatively how to solve the financial predicament of small and medium-sized enterprises. From proposing these suggestions, we expect that they can promote the banking supervision of China. Then the native banks are able to deal with relatively strong competition from foreign banks, and we can strengthen national banking.The innovation in the article is the suggestions are effective, targeted and innovative, because they are based on the practice of China and they are proposed by comparing t the United States, Taiwan and Canada with the experiences of China. For example, China must carefully treat the market access of private banks. It is an irreversible tendency for the private banks to enter the banking, but we must formulate the stricter and higher entering conditions relative to commercial banks and the foreign banks, and make effort only to allow the high quality private banks to enter banking. Then make sure that private banks can increase the new vigor for Chinese banking industry.