Foreign Banks To Enter The International Experience And The Opening Up Of China's Banking Industry

Since the 1990s, the trend of global economic integration has vigorously pushed forward the financial liberalization in developing countries. The entry by the banks of developed countries into developing countries has become a conspicuous phenomenon around the world. Especially in those emerging market economy countries like Argentina and Central and Eastern European countries such as Czech Republic, foreign banks have taken up a large or even overwhelming proportion in the local banking markets.At the end of 2006, as China had got through the five-year transitional period of its accession into WTO, it began to open its banking market in an all-round way to the outside world. This would inevitably bring forth significant and profound influences on China's finance and economy. This paper analyzes the process of foreign banks' entry into Latin American and CEE countries, presents the measures and polices the local governments took to cope with this, discusses the effects of banking reform in these countries, and sums up the experience of these 'pioneer countries' in absorbing foreign banks and, thus, provides some suggestions for China's policy-making on banking industry development.