The Analysis In Strategy Cooperation Of The City Commercial Bank And Foreign Bank

As China's financial industry overall opening up, foreign banks continue to enter, the commercial banks in which the external environment has become increasingly fierce market competition. China's more than 100 city commercial banks to survive in a national commercial banks and foreign banks are between the current competitiveness, has it's the ability to adapt to the current all-round opening up the banking industry competition and the competition in an invincible position? In 1999, the International Finance Corporation of Shanghai Bank to 22,000,000 U.S. dollars equity investment, so that the Bank of Shanghai to become China's first overseas strategic investors to accept the city commercial banks. In early 2004, the China Banking Regulatory Commission proposed the basic ideas and principles to the existing city commercial banks to carry out careful restructuring and transformation to encourage private capital and foreign capital investing the existing city commercial banks, city commercial banks to restructure and reform and to improve its management Level. In June the same year, the China Banking Regulatory Commission also proposed to encourage the introduction of city commercial banks outside strategic investors, based on the integration of existing resources, according to market rules and principles of voluntary reorganization to raise the overall level of development and market competitiveness. As of the end of the year, there were 4 city commercial banks to accept the investment of foreign-funded financial institutions, namely Bank of Shanghai (International Finance Corporation, HSBC), Nanjing City Commercial Bank (IFC), Xi'an City Commercial Bank (International Finance Corporation, Bank of Nova Scotia Canada), Jinan City Commercial Bank (Bank of Australia). In such a situation against the backdrop of large, some of the more advanced economies in the region, city commercial banks have to find an international strategic investors, with a view to marriage with foreign banks manner, and improve their overall level of competition in the market strength. This strategic cooperation will improve the effectiveness of city commercial banks or not in the end, and the city commercial banks of cooperation can become more competitive or not, it becomes worthy of study and thought.This article first related literature review for the impact of foreign-founded banks to enter the domestic banks, expounded the influence and bank of the efficiency of the host country from the entry of foreign-founded banks. On the basis of these theories, the article had a correlation on the feasibility for China's city commercial banks to introduce strategic investors outside. Mainly through the Commercial Bank of China's urban development history, current situation and the development of foreign-funded banks in China, the development of motivation and strategies were compared on a our city commercial banks and foreign banks, and had initial demonstration of the feasibility of foreign banks to become shareholders equity approach to the feasibility of co-operation. Finally, the article use the actual case of Jinan City Commercial Bank and Commonwealth Bank of Australia for co-operation, from the process of cooperation, cooperation and the results of co-operation, demonstrated the impact of foreign bank stake in city commercial banks, the points of view and suggestions was showed in the way of point to a plane for city commercial banks and foreign banks strategic cooperation, looking forward to the practical application of some inspiration.