Dialysis In Chinese Foreign Banks And Commercial Banks In China Competition

With China accession to World Trade Organization(WTO),China banking industry will be opened widely in a short time and lots of foreign bank will enter into China banking market. With solid overseas capital, clear equity institution, mature modern management experience, strong market sense and perfect commercial services, foreign banks will compete with local banks in market, clients and talents, which will have profound impacts on local banking industry. This thesis is a comprehensive study on competition between foreign banks and local banks on the basis of the foreign banks .It is a new research angle, which , I hope , will bring some fresh ideas to practicians and theoreticians.There are four chapters in this thesis:Chapter one: Concept of foreign banks and its development feature in China market. Foreign banks have four forms and three phases in China. As a part of our commercial system, foreign banks have experienced initial stage(1979－1990),increase development stage(1991－1999)and comprehensive development stage(2000－now).On the whole, foreign banks have distinct features on mechanism set-up, region distribution, and policy treatment.Chapter two: Competition strategies. First ,explain the competition on the whole. Then compare three competition models. There are two forms of competition strategies: scale economic strategy and scope economic strategy. Although different foreign banks have the same competition strategy, quite a lot differences are still in their own strategies when developing business in China market. In this chapter, I introduce three forms competition models: Hongkong banks model , Japan banks model and West banks model. There is no doubt that competition have profound compacts on China banking industry including positive impacts and negative impacts. The positive impact are as follows: fair competition impact , foreign capital introduction, human resource impact, organization demonstration impact. The negative impacts are as follows: increasing the difficulty of financial supervision and macro- economic control. Chapter three: Long-term of competition.With China accession to WTO and new finance stipulations, there are some change on the environment of foreign banks, who will compete with local banks in market, client and talent. During the competition, foreign banks have not only advantages but also disadvantages. The advantages are as follows: solid overseas capital, rich product, creative ability, mature management experience and modern service. The disadvantages are as follows: lack of sufficient operation web and strength local clients support. So,there is a long way to end the competition. The two part should have a lot opportunities to cooperate. Chapter four: Cooperation on the basis of competition. Cooperation is an high-level form of competition. Considering the advantages and disadvantages, foreign banks should cooperate with local banks, which can at last realize a win-win situation. In this chapter, I probe into the reason and possible forms of cooperation.