Study Of Foreign Banks Competition Strategy After All Restrictions Removed In China

To implement China's WTO commitments on banking sector, the China Banking Regulatory Commission (CBRC) announced on December 11,2006 that all geographic and customer restrictions on foreign banks domestic currency businesses would be removed from the day, it means a great chance for all foreign banks to expand their business in China, at the same time, China's good macro environment is favorable condition for foreign banks development, foreign banks will come to a stage of all-round development, along with which there will be a keen competition between domestic banks and foreign banks. For foreign banks, the competition is not only from domestic bank but also other foreign banks, in order to take the chance and win a place in China, foreign banks must make a proper competition strategy, which is also the subject of this article.Combining actual case study, through the analysis of foreign banks present situation, external environment, internal conditions, with application of the theory of Enterprise Competition Strategy, I draw the conclusion as follows: for the present situation, combination and purchase strategy should be chosen as the main competition strategy by foreign banks, basing on which Focus Strategy and Differentiation Strategy should be combined to apply.There are 5 chapters, chapter 1 is to explain why to raise the question and the basic method and theories used in the study; chapter 2 states the situation of foreign banks in china, including the problems encountered; chapter 3 is an analysis on external macro environment and industry competitive environment; chapter 4 is an analysis on foreign banks internal resources; at the end, in chapter 5, basing on the former analysis, I draw the conclusion.At present, most of studies about foreign banks "invasion" are from the view of domestic banks or governors to see how to deal with foreign banks competition or what policy should be made by government, the foreign banks competition strategy is mentioned but not studied seriously. The innovation point of this article is that the study is absolutely from the view of foreign banks and combined with real case study.I hope the article can help domestic banks to objectively understand foreign banks competition strategy, so as to take appropriate measures to deal with the 'invasion' of foreign banks, at the same time, I hope the study can provide reference for domestic banks' reform and expanding abroad.