| Since entering 21th century, the globalization and technological innovation of finance have broken the demarcation line of national boundaries and will continue further. As China has been a member of WTO, the finance industry opening gets faster and strengthened, and the competition of national finance industry becomes increasingly intensified. Therefore, Chinese banks set up branches overseas and expand abroad in succession besides coping with the competition of foreign banks at home. Moderate operation abroad is necessary for Chinese banks to participate in international finance competition and have the initiative, and it is beneficial for Chinese banks to take full use of inside and outside resources and markets. Because it is relatively late for Chinese banks to start developing overseas, it cries for finding out appropriate operation strategy and resolving existing problems from theory and practice. This is exactly the original intention of writing this paper. However, it is a huge and complicated issue concerning Chinese bank overseas development and it is unpractical to study this issue entirely in one essay. Hence, in view of the overall fact that overseas development of Chinese banks is still on the rather undeveloped level, this paper is established in investigating the dynamic mechanism of Chinese bank expansion abroad, namely the reason, location and organizational form of expansion. The establishment and selection of this dynamic mechanism are initial stages of general strategy. Understanding and mastering this issue are beneficial to solve some ubiquitous problems existing in transnational operation of Chinese banks.This paper takes advantage of the research results of domestic and international development of transnational banks, and focuses on the selection of location and organizational form in the bank overseasdevelopment by introducing the cost benefit comparative model. Taking the relevant models of domestic and international bank overseas development as researching clues, this paper aims at deducing the location and organizational form suitable for the development of Chinese bank overseas development. The innovations of this paper are as follows. Firstly, it does not discuss the transnational operation of banks in general but advances the theoretical instruction and practical choice from the aspect of dynamic mechanism of bank overseas development. Secondly, this paper uses the selection of location and organizational form of developed countries for reference and corresponding selection of Chinese banks is brought forward based on Chinese facts. Thirdly, concerning the high risk of bank overseas development, the international supervising cooperation of Chinese bank overseas development is included to insure the integrity and systematism of this paper.This paper includes four chapters. Chapter One, Research on the dynamic mechanism of bank overseas development, is theoretical analysis. It probes into the dynamic mechanism of bank overseas development from three aspects. The 1st section is development mechanism, which expatiates the reasons urging the banks to expand abroad relative to internal operation. The 2nd section is location mechanism, which points out the theoretical standards in selecting location for banks to expand the operations abroad. The 3rd section is organizational form mechanism, which discusses the reasons for banks to take particular organizational form (for example, representatives office, branch and subsidiary) when they develop overseas. By analyzing the banks' behavior to maximizing the global profit, this chapter figures out that bank overseas development needs to get going from the aspect of comparative advantage and should not expand blindly without considering the costs. The selection of location and organizational formmust accommodate the domestic situation.Chapter Two, The realistic backgrounds and development mechanism of Chinese bank overseas development, proceeding with the realistic backgrounds of Chinese bank overseas develop... |
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