Empirical Research On Determinants For The Internationalization Of Chinese Commercial Banks

Together with the fast growth of the trade in international commercial service, the importance of the trade in international financial service has been improved. Meanwhile, the financial service and trade in financial service have been concentrated to the international large banks gradually. Just in such a state of affairs, we start to research commercial banks which are the main part of trade in financial service in China. Through the analysis of determinants for internationalization of commercial banks, we could provide some references and advices to the international development of commercial banks and how to compete better in the market of international financial service.We summarize the status of banking industry of the whole world and have a comparison in internationalization of banking industry between China and the World, through which we could get the knowledge of the international developing stage of Chinese commercial banks and the developing direction in the future directly. And then we analyze the determinants for internationalization of Chinese commercial banks from three aspects on the basis of theories and the reality of China by regression analysis, the empirical result indicates:Firstly, there is positive correlation between the bank scale, cognitive of overseas running and the internationalization of banks, cognitive has more influence in internationalization, it is because of the beginning stage of banking internationalization in China, but according to the experiences of international large banks, we could expect that bank scale will be more important in the future development of Chinese commercial banks.Secondly ,as a special factor of China, institutional change has an important influence on Chinese bank's overseas running and we could examine it from the levels of openness, non-state-owned and marketing. Market size of home country as another factor doesn't have obvious influence, it is related to developing stage of Chinese market, which is changing from conservative and simple to open and diverse. Thirdly, in the host country related factors, both non-financial foreign direct investment and bilateral trade have positive correlation with the bank's internationalization, "leading effect theory" is applicable in the developing process of Chinese commercial banks. Geographical distance between home and host country, if there is a finance centre in the host country and the openness level of host country as the location advantages also have great influence on the internationalization of Chinese banks .GDP per capita and exchange rate seem have poor explanatory abilities. We believe that follow the foreign developing steps, these two factors will be key factors in overseas running.In conclusion, parts of the results in this paper are identical to the foreign scholars'. As well as, some parts have differences for the reason of our reality .At the present time, there is still some certain distance between our commercial banks and international famous large banks, which need to be shortened in the future.