The Influence And Counter Measures Of Foreign Banks' Enters Into China

WTO's entry transition-period has already finished, China banking industry already comprehensive opening to the whole world. The entry of foreign banks can improve operation efficiency of local banks and promote them to improve competitive ability by means of various financial innovations. Considering the reality of China, foreign banks'entry , on the one hand , will facilitate the development of domestic financial market , introduce advanced technology , increase management and operation levels and strengthen international competitiveness of Chinese banks ;on the other hand , it will challenge and lash Chinese banking industry seriously . The huge bad asset and the poor capital fund in Chinese banks will not only weaken their competitive ability, but also harm their system safety .Since China's entry into WTO, domestic financial market was opening for foreign investment gradually and the operation environment and conditions for foreign banks were improved. According to the contents of the commitments, the banking of China will open business license delivery , foreign exchange business , RMB business, and finance consultant step by step in transitional period .our country, 5 finance industry will totally open to the world at 2006 , and it will merge into the global financial system at larger scale . With the rush of banks invested by foreigners, our domestic commercial banks will have to face fierce competition and challenges Which never occur.Through empirical analysis , the paper looks into the impact of the entry of foreign banks on the profitability , efficiency , anti-risk ability and stability of domestic bank industry , and with index analysis , the paper compares the competitiveness between the Chinese and foreign banks and then tries to find out the reasons . Based on the conclusions, the paper then tries to provide some advice accordingly. Facing foreign bank entry, Chinese bank must see the disparity with the international advanced banks, also see our own superiority and the strength. To maximize the profits the entry brings to China , it will be necessary to improve competitiveness of Chinese banks , improve the external environment, deal correctly with the relationship between Chinese and foreign banks. So long as correctly treats the internal and external environment changing, go deep into reforms and innovation, exploring the management way positively, the promoting finance service level, enhancing finance innovation, making the core competitive power, the Chinese bank definitely may compete with the foreign bank ,and grow strong unceasingly in the new environment.