Multinational Banks. On China's Influence Factors And Effects

The commercial banking is an important part of the tertiary industry. Because of the characters of the service industry, the commercial presence, namely FDI, becomes the most important form of the international service trade. And meanwhile,the banking FDI is the most important part of the service FDI.The multinational banks are the main conductors of the banking FDI. When entering the domestic countries, they can take use of some different forms, including the agencies, representative offices, the subsidiaries and the branches. Especially, the merger and acquaint have become the main entry way. Starting from 14th century, the development of the banking FDI and multinational banks experienced three history stages, and each stage had its own characters. Meanwhile, the banking industry has set up some international systems to regulate the banking FDI and multinational banks. From 1980, China has begun opening the banking industry, and the foreign banks have become the important part of our banking industry. The multinational banks in China are developing quickly after entering WTO, and have many new characters and trends.The theories of the banking FDI are based on the traditional FDI theories, in which the International production eclectic theory is the most important one. According to the theory, the ownership advantages, the internalization advantages of the multinational banks and the location advantage of the domestic country all together provoke the banking FDI and the entry of the multinational banks.According to the Eclectic theory, the multinational banks in China are also resulted in by the three advantages, namely the ownership advantage, the internalization advantage and the location advantage. And the entry of the multinational banks will affect the domestic countries deeply, including the economic development, the financial stability and the banking industry. The multinational banks also have an influence on our country, so we must analyze both the positive and insensitive effects, and take measures to supervise them.