Foreign Banks In China's Development Status, Trends And Countermeasures

This article focus on the present situation and tendency of the foreign banks in PRC. At the beginning of the paper, the history of the foreign banks in China is introduced, upon this, it was a summary of the characteristic of the foreign banks' development in China. Then, the paper analyse the current situation of the foreign banks, and point out that there are some restriction impede the foreign banks move forward. In the third part, there are some examples laid out to show the matters foreign banks faced at present. In the forth part, there is an introduction on WTO. After compared the competitive edge and the inferior position of the foreign banks and local banks, indicate that China's accession to WTO build a better competition condition for the foreign banks. While in order to protect the local economics and financial, the government will carry out some new policies as laws and rules to direct the foreign banks entered and station in. And the foreign banks will face the worse situation from local supervisory. Point out that the entry of the foreign banks after china's accession to WTO will bring pressure to the fragile banking system of China, and the local bank will face great challenge especially in competition of human resources. Then the paper forecast the development of foreign banks after china's accession to WTO and the pattern of the Chinese financial market, describe that Chinese and foreign banks will co-operate on a larger scale and in greater depth on equity investment, financing, business relationship, computerization, network technical support, information sharing etc. Conclude the cost and profit of the further opening of Chinese banking industry. In final part of the article some conclusions and certain suggestions to improve the competitiveness of local banking industry are made.