The Investigation On Banking Power Of Control

The paper discusses the introduction of foreign strategic investors in the reformation of domestic commercial banks. It analyses in detail the root problems and current situation of domestic commercial bank reforms, the significance of foreign strategic investors and issues that should be addressed. With external help from experienced, professional foreign strategic investors, domestic commercial banks can not only raise capital and improve shareholder makeup, it also absorbs quality management skills and experience, as well as advanced technology and products, strengthening competitiveness in the financial market and building market image in the international scene. This is beneficial not only in overseas development and financing, but more importantly, in setting up a good management system in commercial banks. The lack of effective company management is the root problem of a backward management system, accumulating risks, weakening regulating mechanism, low productivity and efficiency, and is precisely the reason for reforming the domestic commercial bank. If the reform is successful, it will be, on top of a milestone in China's banking industry, a crucial strategic development in China's economic and financial development.At the moment, introducing foreign strategic investors is an effective route to reforming commercial banks, and a prerequisite in implementing financial reforms and opening up the f'mancial market. At the same time, we must look out for problems that may arise, or might be already budding, in the process of introducing foreign capital. Such as capital bank domination losing risk, financial supervising and managing and government structure question and so on. So we observe the regulations and instructions on introducing foreign strategic investors and stay alert of possible problems, we would be able to take advantage of the foreign capital, professional knowledge, international experience and advanced technology in the best interests of the country. And in this direction, China's banking industry would expand and develop, reforming into a strong competitive force with modern financial services of professional standards.