The Research On The Problem Of China's Commercial Bank's Location Selection In Overseas Investment

At the end of last century, the wave of global expansion of financial industry came about in the international market, so did the banking, which is the basic industry of finance. To secure new profit generator, some giants in the banking have accelerated the pace of foreign expansion to new markets for business opportunities. In the global market layout of world renowned banks, they choose the region that has the close economic and trade ties with our country, form the point of view, they offer very great example for our banks in the course of foreign investment. With the development of our country, GDP, the amount of foreign trade and investment all have a rapid development and good accumulation, according with IDP, our country has entered into the stage when net foreign investment increases gradually, the scale of overseas investment of domestic enterprises expand year by year. Because only commercial banks provide commercial financial services and three policy banks take policing financial services functions, being as financial service, objectively speaking, It needs multinational operations of our commercial banks to provide them with convenient financial services.In addition to the external environment, the improved internal environment is a major driving cause of foreign investment. After the reforms since 1998, the main indicator of China's banking industry has been improved greatly, the average NPL ratio of our four major state-owned banks is below 4% and capital quality has improved significantly, the commercial banks in line with the capital adequacy requirements of the new Basel Capital Regulatory Agreement have increased from eight in 2003 to more than 100, After-tax net profit of major commercial banks have increased to some extent, the scale of banks have expanded, the improvement of overall strength index for the Chinese commercial banks lay a solid foundation for business.However, in contrast with domestic market, there are many unstable factors in the international market, we shouldn't overlook such the factors as the target country's political stability, supervision policy and the cost of capital when we choose the targeted region. It is uneasy to get the information, which brings about risks for oversea marking. Therefore, from its own capacity and effective demand, our commercial banks should choose appropriate target market to invest in and guard against multiple risks, which are the keys to expand the international market. After analyzing the current situation of our bank's foreign investment, in the reference of world-renowned bank's strategy of oversea expanding, This paper analyzes some factors affecting location choice in the course of commercial bank's foreign investment. After the development for many years, our commercial banks represented by four state-owned commercial banks have been getting ownership advantage, To promote the "going out" strategy and transform the ownership of cross-border investment advantage into an essential core competence, this paper also raises some tactics of location choice for our commercial banks after finding out some problems in the foreign investment.