Foreign Equity Participation In Domestic Banks Effects Research, And Risk Management

After China' s entering into WTO and the implementation of the open policyin the banking industry, Chinese banking industry has experienced a chain ofchanges, including the foreign capital into domestic banks.At the very beginning, the paper concentrates on Merge & Acquisitiontheories which could be applied to share-purchase of foreign capital. Lateron, the phenomenon of foreign capital into domestic banks are summarized andevaluated from series of aspects, consisting of the objects, percentage,genres of share-purchase. In the forth part of the paper, I establish theinput/output evaluation system by DEA to analyze the efficiency of severalcommercial banks. After sufficient comparison, we can naturally come to theconclusion that the efficiency of these banks is generally improved. The finalpart focuses on the coming risks brought out by share-purchase and providesnumerous counterplans to strengthen risk management and supervision offinancial system.