Study On Entry Motives And Operation Strategies Of Foreign Banks In China

On November 2006 The Regulation of The People's Republic of China on the Administration of Foreign Banks and The Implementation Rules promulgated.It means that, From 2007, Chinese banking market opened to the foreign institutions totally, form then on, foreign banks have no restriction of region,business and customer.On one hand, foreign banks' entering into Chinese banking market will bring us a lot of opportunities for development.On the other hand, we should clearly understand that foreign banks are more flexibile in the management experience and operation strategies,have a global network of services and solid financial strength, high-quality personnel and incentive mechanism adapted to the market economy. Therefore, challenges and enormous influence brought by foreign banks is obvious.In such circumstances, study on foreign banks in China is very necessary.First,this paper employs an double logarithmic model to analyze the entry motives of foreign banks in China.From which we can draw a conclusion that the motive of foreign banks coming to China is mainly to share the ecnomic growth profit of our country at present stage.Then, based on foreign banks entry motives, this paper anlyse the operation strategies and the constantly adjusted business strategies, all of these reflected the conclusion of the model .Finally ,this paper presented that it is necessary to raise our banks' own core competitiveness, improve the efficiency of foreign banks supervision and at the same time handle the relations with foreign banks correctly.