The Research Of Foreign Strategic Investors Participating In The Governance Of City Commercial Bank

Recently, the development of city commercial banks is a bright spot in China's banking industry. It develop into an important part of the banking sector because its form of management is flexible and the ability of creating profit is strong, especially playing the main role in the local banking sector. However, the governance system of city commercial banks are still very fragile because of various reasons, and there is a large risk of operating in the long term. In recent years, government applys some drastic policies in the field of city commercial banks and adoptes a series of measures in line with international standards.One of the important reform measures, that is, lead the overseas strategic investors into the governance of city commercial banks. The introduction of foreign strategic investors is the best choice for both worlds: not only ease the pain of lack of capital for city commercial banks,but also make use of the advanced concepts and technologies of foreign institutions.Besides, overseas strategic investors participating in the governance of city commercial banks can obtain a larger right at a lower cost of entry, especially get the influence of the market, while avoiding the related restrictions, regulations, and policies.Firstly, this paper describes the development process of overseas strategic investors in China and its mode and motivation of participating in the governance of city commercial banks;Secondly, on the basis of status quo research , this paper analysis five aspects of overseas strategic investors participating in the governance of city commercial banks from the proceeds, the cost ,the policy regulation, the participated barriers, the legal environment and so on. On the basis of treating contingent factors mathematically, considering their own risk preferences of overseas strategic investors and the city commercial banks, this paper set up a economical mechanism model of overseas strategic investors participating in the governance of city commercial banks;Thirdly, Combining the mechanism model, the paper analysis its internal and external specific paths in order to lay the theoretical foundation of specific strategies;Finally, this paper discuss the specific strategies of overseas strategic investors participating in the governance of city commercial banks from the pricing strategy, and cooperative strategy , provide the actual operation reference for the reality of the economic environment.