Legal Regulation Of Foreign Banks Competitive Behavior Research

Since China made its policy of reforming and opening up to the outside world, a number of foreign-funded banks have entered into Chinese financial market, especially after China's accession to the World Trade Organization the number of which is getting larger and larger. Foreign-funded banks are now playing an important role in China's banking industry by stimulating the development of Chinese national economy. While China's banking industry is facing an even greater challenge after its overall opening up to the whole world., we should strengthen legal regulations on foreign-funded banks, minimize their impacts on China's national banking industry and speed up the reformation of state-owned banks in order to establish a healthy and competitive banking system in China at last. In addition to supervising the accession of foreign-funded bank and managing its risks, there is another important task for us to perform. That is to explore the values of legal regulations on the competitive behavior of foreign-funded banks, protecting our national banking industry that is relatively weak at present but is vital for the over-all development of Chinese national economy from a long point of view.Laying emphasis on its ways and scales, the first part of this dissertation makes analysis on the competitive behavior of foreign-funded banks from several aspects like price, business, human capital, clients and intellectual property rights, makes comparisons of the competition capability between the state-owned banks and foreign-funded banks in China. This chapter starts from the promises that was made by China before its accession to the WTO, lists China's fulfillment activities on the opening up of banking industry and analyzes the new competition environment especially after the "protective period after China's accession into the WTO".The second part of this dissertation discusses about the necessity of legal regulation on the competitive behavior of foreign-funded banks, makes researches on its values. The risks caused by illegal operations of international banks and the unfair superior policies for foreign-funded banks to state-owned ones make it even necessary for us to make legal regulations on the competition in banking industry.