Research On The Impacts Of Foreign Banks's Full Entry Of Chinese Banking

Since China's entry into WTO in 2001,domestic finanial market was opening for foreign investment gradually and the operation enviroment and conditions for foreign banks were improved.Our country's finance indutry has totally open to the world at 2006,and it will merge into the global financial system at large scale.With the rush of banks invested by foreiners,our domestic commmercial banks will have to face fierce competition and challenges which never occur.So it is important to research the Impacts of foreign banks's full Entry on Chinese banking.When our country Banking industry comprehensive opening to the outside world near two years,the research foreign capital bank enters the influence which produces to Our country Banking industry,analyzes opportunity and challenge which it brings, regarding helps Our country Banking industry correctly to be supposed the influence which enters to the foreign capital bank brings,guarantees Our country Banking industry the steady movement,provides the policy-making basis for the bank developmental strategy and the national finance policy formulation,has the vital practical significance.This article taken the currency banking theory as the instruction,utilized modern statistical theory and method and profied from the domestic and foreign related resesrch results,making system analysis on the effect of foreign bank entry on banking efficiency and stabilization in host country,especially it puts the emphasis on the effect to Chinese banking industry.Based on the conclusions,the paper then tries to provide some advice accordingly.From a macroscopical aspect,the enterence of the foreign capital banks may produce positive and negative effects to the host country.The infulence vary a lot by many factors such as the the difference choice of foreign banks made to enter another country,such as national economic development level of the host country,such as the intensity that the foreign banks enter.Foreign-funded banks enter Chinese banking sector and make impact primarily by the learning and spillover effects.On the basis of the qualitative analysis,this paper using the panel data of four state-run commercial bank and ten joint-stock commercial banks studies the influence of foreign bank entry on efficiency and stabilization of domestic banking.The regression models explain the state-owned commercial banks and joint-stock commercial bank's net interest income, non-interest income,net profit rate and operating expenses hawe different changes while the enterence of the foreign-funded banks.To maximize the profits the entry brings to China,it will be necessary to improve competitiveness of Chinese banks,improving the external enviroment,and strengthen the monitoring intensity and deal correctly with the relationship between Chinese and foreign banks.