Empirical Research Of The Motive Of Foreign Banks' Entering China And The Effects Of Foreign Bank Entry On The Listed Bank In China

Since the reform and open policy, the foreign bank obtained a bigger development in our country, has become a noticeable strength in our country finance system. China authorized first foreign capital bank organization -Japan to lose the difference bank to set up the office in Beijing in 1979, this was the foreign capital bank develops the first step in China. In 2001 our country officially joins WTO. On December 11, 2006 , our country banking industry already comprehensively opened to the foreign capital bank. The foreign bank's entering forms the stern challenge to bank industry and brings the serious competition pressure, and will have significant and the profound influence to our country finance and the economy.Therefore, the research foreign capital bank enters our country the agent and goes on the market banking industry's influence to our country, the discussion should to the strategy, provides the policy-making basis for the bank developmental strategy and the national finance policy formulation.First, this article quotes background-our country financial system vicissitude, the financial globalization which the foreign capital bank enters, joins WTO; with rationale -finance deepening theory and financial structure and economical development theory. Next, this article introduced the foreign capital bank development course and the characteristic and has analyzed the foreign capital bank three development phase in our country: in 1979 -1993 foreign capital bank development course and characteristic; in 1994 -2001 foreign capital bank development course and characteristic; after our country joins WTO the foreign capital bank development and the characteristic.This article real diagnosis is partial, also is the paper key point and the core. First, paper discusses the motive by analytical method of time series regression discovering that the key factors influencing those bank's entering the Chinese market are: foreign direct investment scale in our country, person all GDP, domestic difference of lending rate and deposit rate and the open policy of the Chinese bank industry. Its two, based on Chinese listed bank data from 2002-2006, the paper analyses the effect of foreign bank entry on domestic listed bank, that includes revenue structure, profitability, risk preparation, asset quality, safety and stability. The results showed which non-interest income rate, net interest income rate, margin, and capital adequacy ratio is rose,while decline of bad debt reserve fund rate and bad loans rate with foreign banks to enter the deepening. The empirical results indicate that there are"catfish effect","technical diffusion effect""financial stability effect"in listed bank. To meet the impact from foreign banks, the paper proposes several countermeasures.Finally, above the use real diagnosis conclusions, puts forward some policy proposals to the foreign capital bank to our country bank influence.