Research On Influential Factors For International Business Development Of China's Commercial Banks

Broadly,international business in Commercial Banks is related to foreign currency or the activities of foreign customers, which include not only the business operations in foreign countries, but also include the business engaged in home which in relevant to foreign currency. International businesses in commercial banks are developing with the international trade's developing. With the development of economy globalization, china's international trades develop rapidly. This provided a broad space for china's commercial banks to develop their international businesses. China's commercial banks has been operated RMB as their main business for a long time, and they involved in international businesses only several tens of years. Nevertheless, international businesses in china have had a rapid development only the ten years after the accession to the World Trade Organization. International business has become a key business areas of commercial banks, china's commercial banks pay more attention to international business, increase financial, technical, personnel inputs, draw on international experience in management and production maturity, and reform and innovate continuously. They form their own management mode, create conditions for our products and provide high quality services to meet the growing international business needs.In recent years, China's commercial banks have made a significant success on international businesses, but there is a gap on the quality of talent, technology, management innovation and other aspects, compared to the foreign-owned bank or the main international advanced banks. On the context of world economic integration, China continues to reform, open up, and strengthen exchanges and cooperation in the global economy. So commercial banks'international businesses will have more room for development. China's commercial banks will inevitably to find their own defects and the factors affecting international business development, and take measures to enhance international business development. Therefore, the further research on international business becomes a common topic for both the theorists and the banking sector.The paper studies the main factors which affect china's commercial banks in international business development, and how these factors affect the international business development, and then put some forward corresponding countermeasures.Firstly,The paper described the research background and significance of this topic, discussed the necessity of the study on factors which affect international business development of Chinese Commercial Banks, introduced the contents and research methods, and give a technology roadmap about the ideas and structures according to the full text of this article .Secondly, the paper summarized the development of domestic and foreign research on commercial banks'international businesses, making theoretical groundwork for this article. Foreign scholars had a long in-depth theoretical study of international business operations of commercial banks. There are mainly several theory in this area, for example,the Comparative Advantage Theory, the International Investment Theory, the Three-Stream Theory, the Industrial Organization Theory and the Internalization Theory, etc. Comparably, Chinese scholars mainly research on the business risk prevention, marketing model, business innovation, business operations and other aspects of international businesses of commercial banks has been studied. The above studies descript the bank from different perspectives of the international business management mechanism, and there is a great significance for further study of international business operations of Bank.Thirdly, the paper studied the development process and the current situation of China's commercial banks'international business. Then found some problems in international businesses development. From the New China was established to the initial stage of the reform, China's Commercial Banks still at an early stage on the international businesses. With the deepening of reform and opening up, Chinese Economy achieved a rapid development, and the international businesses in China's commercial banks also entered the stage of development. 2001, China joined the WTO, the financial industry opened to the outside world, foreign banks continued to integrate into the Chinese market. In response to competition with foreign banks and to adapt to the needs of economic development, China's commercial banks enhanced their international business development, and access to rapid development stage. In this stage, International business has expanded rapidly. Product range is more and more complete, and product structure is more and more reasonable; the international business management updates continually, and institutional setting is more and more reasonable; international business marketing model matures step by step, paying more attention to customer relationship management, customer marketing manager system is shaping. However, commercial banks'international business development in China has many problems: compared with RMB business, the emphasis on international business is not enough; the marketing model takes selling seriously and light marketing lightly, and the marketing channel is not smooth; international business Customer Type is very Single; product innovation is not enough; the quality of international business personnel is low, and there's a serious brain drain.Then, the paper analyzed the factors on the development of China's commercial banks'international business factors, preparing for the empirical analysis. The development factors of China's Commercial can be divided into external factors and internal factors. External factors mainly include the foreign exchange policy and the development of foreign economic activity. The influence of foreign exchange policy by the state is mainly the control on the foreign exchange; in addition, exchange rates and interest rates also have an important impact on international business development. The Foreign economic activities include international trade, international cooperation, and international investment. The internal factors mainly include the foreign and domestic currency financial strength, the workforce, business office, banking organization, modern communication facilities, product innovation and development strategy.And then, the paper made an empirical analysis. International businesses in commercial banks include assets Business, liabilities business and intermediary business. The paper used foreign exchange loans to represent assets Business, used foreign exchange deposits to represent liabilities business, and used international settlement business to represent intermediary business. According to the analysis of development factors, the regression model chose total bank assets (ZC), interest rate (LL), exchange rate (HL), import and export volume (WM), foreign direct investment(WZ)and education (XL) as independent variables. And the paper chose foreign exchange loans, foreign exchange deposits, and international settlement business as the dependent variable. Then, Used Pearson correlation analysis to analyze the relationship between variables, extracted three principal components used the Principal Component Analysis Method, established three linear regression models, and optimized the models using backward variable selection method.Finally, on basis of the qualitative and quantitative analysis, the paper gives China's commercial banks some suggestions on the development of international businesses. Establish the concept of long-term international business development, reform the international business management system, improve the international business talent development strategy, improve international business product innovation, and increase capacity of international business product marketing.