A Study On The Internationalization Of Banks In The Context Of RMB Internationalization

During the past ten years, the improvement of Chinese banks’ competitiveness, the breakout of international financial crisis, and a series of national policies contributed to the quick development of Chinese commercial banks’ internationalization. Since the trials of settling cross-border trade accounts in RMB was promoted in 2009, the internationalization of RMB achieved initial success, which keep effecting the internationalization of Chinese banks. Therefore, it is essential to study the influence mechanism between the internationalization of RMB and Chinese banks, which could help Chinese commercial banks utilize the opportunities and improve their international operation.This paper firstly summarizes how the internationalization of home currency participate in the process of banks’ internationalization in Japan and Germany since 1970 s, and then it concludes some common characteristics and experiences from the case of Japan and Germany. Though their influence on the two countries are different, the affected business are almost same. Secondly, it analyzed the impact of the internationalization of RMB on the internationalization of Chinese banks, including the time relationship of their own development, the influence on overseas business and institutions, and the business performance. Besides, as the internationalization of RMB deepening, some challenges may come out, including the systematic risk and increased difficulty of global management. To address the challenges, Chinese banks should put more attention on overseas business, and enhance their ability to launch unified management worldwide. In the end, according to possible challenges, the way that the internationalization of RMB would produce influence on the internationalization of Chinese banks, and the experience of Japan and Germany, the paper put up some strategies on location choice, targeting customers, service and products, and risk management, such as Thus Chinese commercial banks could well utilize the opportunity of the RMB internationalization.