Foreign Banks In The Inter-district Of The Chinese Banking Sector

Since different areas of China have different economic development levels, thedistribution of banking system and the business capacity of single bank will be different.So the entry effects of foreign banks that affect our banking system will be different, too.This paper makes empirical analysis of the foreign banks' entry effects that affectdifferent areas of China, and offers some advices for Chinese-funded banks according tothe results. Hope to do some help to maintain the stability of our banking system andagainst financial risks.This paper includes five chapters:Chapter 1: The overview of the studies of foreign banks' entry effects. Aggregatedomestic and foreign research results, and describe theoretical and empirical results of theentry effects of foreign banks.Chapter 2: Introduce the open history of Chinese banking industry. This chapterbrings a brief introduction of the geographical background of China, the regionaleconomic development and the process of the entry of foreign bank.Chapter 3: The distribution of Chinese-funded banks and foreign banks in ourcountry. This chapter describes the distribution of foreign banks and Chinese-funded onesin the eastern, central and western parts of China. Finally analyzes the foreign banks'entry effects that affect China's banking industry.Chapter 4: Empirical Analysis of foreign banks' positive and negative effect thataffect Chinese banks. This chapter uses Eviews3.1 to make regression analysis of the dataof the state-owned banks, joint-stock banks and the overall Chinese-funded banks that inthe east, the central and western of China respectively, and then analyzes the results.Chapter 5: Advices for our banking industry. According to the results, this papergives some policy advices for China's domestic banks.