Research On The Problems Of BOC In The Process Of Internationalization

Since 1980s, with the global economic integration and financial globalization developing more and more in-depth, the process of financial deepening and financial liberalization is speeding up. The economy of various countries and regions in the world is developing very fast, and the financial industry has also get the great development, while international financial market intensifying fierce competition. Internationalization is inevitable for commercial banks. In order to actively respond to international competition of banking, and to satisfy the domestic needs of banking service in foreign trading, more and more commercial banks are beginning to set up branches in foreign countries. There are many problems for domestic commercial banks in the process of internationalization, because of the separate operation of the banking system in china and the banks'imperfect corporate governance, etc. which are the key to domestic commercial banks to be internationalized.BOC is selected as the research object in this paper. Though BOC has been walking in front of other banks in china in the process of internationalization, it is not an internationalized bank as it is still facing many problems in internationalizing. This paper tries to analyze the cause of problems of BOC in the process of internationalization according to the research ideas of "bring up the questions-analyzing the problems-solving the problems", and then proposes the countermeasures and suggestions to solve the problems.Firstly, this paper defines the meaning of banking internationalization from the following aspects:the internationalization of institutions, the internationalization of business, the internationalization of human resources and internationalization of management, etc.Secondly, this paper applies the theory of banking internationalization to analyze the motivation of banking internationalization. BOC is the first bank in china which sets branches in foreign countries and provides banking services, but it is still on the stage of internationalized banking and changing into the full-function of international banking.Thirdly, this paper succeeds in finding the problems of BOC in the process of internationalization by analyzing the status of internationalization of institution, business, human resources and management in BOC.Fourthly, attempting to analyze the causes of the problems in the process of internationalization of BOC, the author finds out that the strategy of internationalization of BOC is not clear, the implementation of separate operation of the banking system in China and BOC'S corporate governance is not perfect, and etc. which cause the problems in the process of internationalization of BOC.Finally, this paper proposes countermeasures and suggestions for BOC to resolve the problems in the internationalizing process. First of all, it gives a case study of HSBC Group's clear strategy of internationalization, inspiring BOC to develop a clear strategy of international development. Then, the BOC is suggested to choose the way of mergers and acquisitions to layout the branches worldwide with reasonability; to break through the system of separate operations of banking, insurance and securities in China, to achieve mixed operation, and to promote international banking business; to integrate the human resources worldwide; to sound the structure of banking corporate governance and achieve the purpose of internationalization of management.