The State-owned Commercial Banks "going Out" Study

Financial liberalization and globalization trend is ascending now. The country has speeded up the adjustment in the banking sector, with the end of the transitional period of China's entry to the WTO, the state-owned commercial banks that are Chinese main bank sector need to be a more positive attitude to go abroad to meet the globalization challenges. Especially against the backdrop of financial crisis, How state-owned commercial banks to 'going out' have a more important practical significance.The driving forces of the 'going out' of the state-owned commercial banks are the first part in this paper. After simply defined the scope and the'going out'of the state-owned commercial banks, three causes of state-owned commercial banks' going out have been analyzed: external motivation, intrinsic motivation and practical motivation. Extrinsic motivation consists of financial liberalization, financial globalization and China's entry to the WTO. State-owned commercial banks compete with foreign banks not only in the domestic market but also in the international market. This competition helps to overcome the shortcomings of their own, increase state-owned commercial banks'profitability, enhance the state-owned commercial banks in the competitiveness of the two markets. The state-owned commercial banks'going out is conducive to the deepening of economic reforms, making full use of financial instruments to allocate resources according to market requirement and improving the efficiency of resource allocation. These efforts of state-owned commercial banks can ensure China's financial security and serve for the Chinese economic development better. In today's financial crisis, development of foreign trade, foreign investment and development and growth of state-owned commercial banks their own need state-owned commercial banks to go out quickly. Foreign trade, investment and state-owned commercial banks'going out promote and develop mutually.Secondly , the relevant theories about the state-owned commercial banks' going out are listed. These theories mainly root from the foreign direct investment (FDI) theory, the theories comprise of T. J. Dunning's theory; Robert Albert's the theory of comparative advantage, monopolistic advantage theory; Edward Shaw and McKinnon's financial deepening theory and the theories of guiding effect.Finally, the last part of the paper is how state-owned commercial banks to go out. It consists of barriers of going out, the favorable conditions of'going out': the increasing size of China's foreign trade and foreign investment, entry to WTO, improvement of the state-owned commercial banks'strength and so on. The main forms of state-owned commercial banks'going out are merger and acquisition; choose branches at appropriate area; some business is internationalized. Under the condition of international financial crisis the state-owned commercial bank have opportunities to merger and integrate some banks involved financial crisis and to introduce high-end financial talents in low cost. Take HSBC as an example to illustrate how state-owned commercial banks to go out currently.