Study On The Transnational Operations Of China's Banking Sector

The integration of world economy has been an irresistible trend, which shows the rapid development of trade and foreign direct investment, the quick flow of resources and the enhancement of cooperation between countries. To enhance the economic cooperation, especially the cooperation between countries in the same area, has been the logic choice, which will improve the international competition of one country with the advantages of the whole area. Under this background each country and enterprise has to think about how to grasp the opportunities and gain the advantages. And now they realize that it is the best way to improve the international competition with the participation of the integration of world economy and utilization of the most comparable advantages.The integration of the world economy and finance make the international banking industry possible to enlarge the scope of business and realize economies of scale. And they also have to face the change of market share and the diminishing of monopolistic advantage. This paper is based on in the context of globalization, particularly in the conditions of accession to the WTO, and speculates China's commercial bank's the business environment and the international competitiveness. We comprehensively considerate the relationship between resources, cost, market, risk and profit in the greater scope market then in-depth study the China's commercial bank's international competitiveness's promoting role on transnational business as well as what are the problems and deficiencies. Then we discuss how to use competitive advantage to overcome the disadvantages in competition and to promote cross-border banking business.This paper is divided into six chapters. The First Chapter is Introduction. In this Chapter, we suggested the background and significance of topics, and then studied the statement of research in this topic at home and abroad, mainly introduced the applicability of Denning Compromise Theory in this research, as well as the international competitiveness of the current situation, and then pointed out the research content and methodology of innovation in this paper. In the Second chapter we major discussed the theoretical foundation of China Banking transnational operations. In this Chapter, we reviewed the theory related to Bank's multinational operations, at last we decided the theoretical choice of this paper, that is Denning's OIL paradigm and the index system of international competitiveness in the banking sector. In the Third Chapter, we firstly analyzed the development statement of China's banking sector, and then mainly analyzed the situation and problem of transnational operation in China's Banking industry and reviewed the cause of its development based on the theory of Denning's OIL, In the Forth Chapter by Constructing the international competitiveness evaluation system model of the banking sector and using a large number of statistical data, we empirically analyzed the four areas of reality internationally competitive of China's banking industry, that is profitability, liquidity, risk control capacity and capability to develop. In the Fifth Chapter we analyzed transnational operation advantages of the banking industry based on OIL, which covers four areas of potential international competitiveness,that is the bank's internal organizational structure, risk management system, and external monitoring system, as well as international operations. In the Sixth Chapter we analyzed the competitive disadvantage of transnational operations of Chinese banks, including the problem of external environment and system, the bad management models and capable, the inadequate of operational and technological innovations and poor human resources. Then we gave some relevant Countermeasures from government and enterprise respectively. We thought that the Government was committed to the improvement of the banks external environment and system and the banks should due to the improvement of their own mode of economic management, business and technical innovation and human resources.In this paper, points of innovation include: (1) new topics: there are a large number of research in international trade liberalization of financial services and the opening up of China's financial market, but the research in how China's enterprises and the government to promote the "going out" of banking sector is still in initial study stage, which issue is this paper looking forward to resolving.(2) new methods: for multinational operations, research tends to only focus on one aspect of Cause and strategic, and in this paper we comprehensively utilized the combining research model of Denning's paradigm and OIL Banking international competitiveness evaluation system firstly, and achieved the organic integration of the study of dynamic reason and that of strategic.