A Study On The Influence Affects And Effect To Foreign Bank Entry In China

Since 1979, foreign bank has been entering China for 27 years, and already become a noticeable economical strength in China. Along with china's economy development and monetary system reform, as well as the better operation environment and condition, foreign bank will certainly has a deeper development in China.This article revolves the crucial question of foreign bank entry, bases on the foundation of multinational bank international management theory, uses empirical analysis method to study the affects of economy and policy factors on foreign bank entry since 1990s.It confirmed the follower theory, and found out that the main reason for foreign bank entry is China's rapid economic development. At the same time, the relaxation of China's finance control is also the important reason. But one research discovery is different with the overseas majority discovery, that there is inverse correlation between the import and foreign bank entry in China.At the same time, this article continues to analyze the effects on China's Banking industry, small and medium-sized enterprise financing problem and the financial system influence caused by foreign bank entry. Generally speaking, the competition effect and the technical overflow effect brought by foreign bank entry enhance China's Banking industry's efficiency and stability, the positive effect is bigger than the negative effect; To the small and medium-sized enterprise financing problem, foreign bank entry cannot improve the situation in the short-term, but in the long-term it will be effective; the influence on financial system depends on China's appropriate measure. In the end, the article proposed brief measure to cope with the foreign bank entry.