Nanjing Firm Paribas Strategic Alliance

Although the history of the equity investment in domestic commercial banks by foreign financial institutions is by no means long, the speed of its development is fast. Especially in recent years, foreign financial institutions have sped up the paces of the equity investment in domestic banks. Strategic alliance with foreign banks has become a popular model for the domestic banks during the development process, and it has also introduced a new viewpoint for the study in the banking competition. Chinese scholars have placed strong attention to the trend of the equity investment in domestic commercial banks by foreign financial institutions, and they have made many studies and investigations in this field from a macro point of view. Through both a theoretical and an empirical approach, this thesis illustrates on the internal mechanism of the strategic alliance between Nanjing City Commercial Bank and BNP Paribas, and also explores the feasible ways for strengthening the management of such a strategic alliance to ensure that the strategic approach of introducing a strategic partner could help to meet the expected target.The thesis starts from a background introduction of the equity investment in domestic commercial banks by foreign financial institutions and an illustration of the relevant theories of strategic alliance. On the basis of an explanation of the underlying reasons for the construction of the strategic alliance between Nanjing City Commercial Bank and BNP Paribas, the thesis examines the structure and the opportunities and risks behind this strategic alliance. Finally, the thesis point out the measures to be taken for handling the risks behind the strategic alliance and also expresses the author's viewpoint and suggestion for managing this strategic alliance.