A Study On The Impacts Of Foreign Banks Entry On Chinese Banking And Some Relative Countermeasures

When China took part in WTO, China's government gave a promise that China would open its financial market completely in five years. How fly the time. China has opened its financial market at the end of 2006 completely. What have the foreign banks affected Chinese banking? This paper analyzes the current situation of foreign banks in China and the ways of their entry in order to study the impacts of foreign banks in China on Chinese banking and give the right countermeasures.This paper has five parts. The first part introduces the study background, then summarizes the studies on the foreign banks'effect towards host country's banks. The second part analyzes one motivation of multinational bank setting up new branches oversea. The multinational banks set up the branches in host country in order to continue to serve their clients because their clients have trade with host country or they invest in host country directly. Then I introduce the different stages of foreign banks in China. One coin has two sides. The third part analyzes the good and bad effect of foreign banks in host country, then introduces the countermeasures in Singapore. In the fourth part I introduce the different stages of Chinese banking, then review the current reformation and problem of Chinese banking, and analyze Chinese banks'chance and challenge, draw a conclusion that foreign banks improve Chinese banking efficiency by an empirical analysis. The fifth part concludes some relative suggestion about improving ability of Chinese banks control risk according to the new Basel Capital Accord, Chinese banking environment outside and supervision strategy of foreign banks in China. At the last there is a perspective of Chinese banking.