The Study On The Influence On The Operating Efficiency Of China Banks By Introducing Foreign Strategic Investors

In recent years,in order to increase capital,improve the banking management,as well as to enhance the credibility in capital markets and other reasons,some domestic commercial banks have introduced foreign strategic investors.Foreign financial institutions are also optimistic about China's rapid economic development and opportunities brought by the enormous potential of the financial markets,so they actively seek participation in Chinese commercial banks.When the commercial banks are looking abroad to find a breakthrough at the time of reforming,disputes also arise. The ultimate goal of Chinese banks'introduction of foreign strategic investors is to improve operational efficiency and enhance competitiveness.Thus,the impact on the banks which has introduced foreign strategic investors has become the focus of debate. After the introduction of strategic investors,whether the efficiency of the banks has increased or not,and to what extent the improvement of banking efficiency can be attributed to the strategic investor,all these questions need to be deeply discussed.Some foreign scholars have analyzed and compared the banks efficiency after the introduction of strategic investors particularly in countries with economies in transition.Domestic scholars have also formed a number of research results,but most are based on an analysis of experience.In this paper,firstly,I use method of financial analysis on China's commercial banks before and after the introduction of strategic investors,and then use the method of regression models to analyze the extend of impact to bank efficiency by the strategic investors.Through empirical research,this article drew the following conclusions:First of all,the introduction of strategic investors by Chinese banks can be able to improve the operating efficiency and raise the profitability of the banks;Secondly,although the rate of non-interest income has increased to varying degrees after the introduction,the role of strategic investors was not apparent,and the improvement may be attributed to the banks own or the macro economy;Finally,the introduction of foreign strategic investors has improved the level of the risk management of banks to a certain extent,and is conducive to the stability of China's banking industry and financial security.At the basis of empirical research,this article made some recommendations for banks and regulatory agencies separately.Banks should actively adjust the relationship with the strategic investor,adhere to prudent management and enhance their core competitiveness;while regulatory agencies should change the concept to enhance the regulatory ability,improve the market environment and promote further reform of China's banks by the introduction of foreign strategic investors.