Foreign Investment Into Research, Security Issues With China's Banking Industry

As the internationalization of banks becoming more and more faster,the degree of China's banking opening is more and more bigger, the network and market shares of foreign banks growing more and more.Foreign banks are playing an increasingly important role in China, they have even threaten the safety of China's banking industry in some way,so how could they do that has become a urgent issue, In order to acquaint the affect that foreign banks have brought to China's banking industry,this article takes a method which combines the theoretical research and empirical studies,qualitative analysis with quantitative analysis.From the development process of foreign banks, we analyse both positive and negative aspects of the foreign capital in China's banking industry: as the same time as they making improvements in market structures and institutional change and technology diffusion, such as "catfish effect", they also take an adverse impact on the financial sovereignty, financial supervision, financial crisis, the threat of transmission, etc. Combines with the experiences of other countries,we put forward policies from the financial institutions and National regulatory proposals separately: opening up the domestic-owned banking industry,adhere to the "differentiated, domestic priority "principle, lower the capital threshold for entry to the banking system to play the vitality of private capital; upgrade the core competitiveness of domestic banking industry, so as to weaken the potential threat of foreign capitals effectively.