How Does The Entry Of Foreign Bank Affects The Efficiency Of Domestic Commercial Bank

The efficiency of bank is a kind of standard that is used to measure the operation situation and core of competition of bank,efficiency is related to the problem of survival and the future development of bank.As the period that WTO organization allowed to china passed,our commercial banks are facing competition from foreign bank that we never encounter before. Under such situation,it is very significant for us to research the topic that how does the entry of foreign bank affect the efficiency of our commercial bank.The paper starts from analyzing the basic characterists of foreign bank in china market. Base on the analysis of characterists of foreign bank,we research all possible way that foreign bank affects efficiency of our commercial bank theoretically,and then study these conclusion with real data.Moreover,in the consideration of difference of state-owned commercial bank and joint-stock bank,we divide the sample into two small samples and study state-owned bank and joint-stock bank respectively.Major contents and conclusions of the paper:First,the way of foreign bank entry is various,so do the effects come with it.The main way of entry of foreign bank in the future will be in the form of sharing the property right of Chinese bank.Second,because of differences between state-owned bank and joint-stock bank,the effects of foreign bank entry on the these two kinds of banks are different.The effects on state-owned bank are indicated on reform,and effects on joint-stock bank are indicated on the competition of market.Third,the paper regards the foreign bank as a coin with two sides,the point of the research is not on whether the foreign bank entry bring more good effects than bad effects,or bring more bad effects than good effects,but on how we can optimize these effects in order to increase the efficiency of our commercial bank.