China’s Banking Sector International Competitiveness Assessment, Risk Analysis And Prevention

Under the context of deepening financial sector reforms in China and accelerated process ofinternational financial markets, China’s banking sector operating international business becomesan inevitable trend. European and American giant banking suffered heavy losses in the financialcrisis while China’s banks have been rapidly listed among world’s big banks. However, as acountry that is in the essential process of economic system reforming, China faces morecomplicated problems when opening bank sector. To choose a suitable internationalization way,we should comparatively analyze the practice of other big international banks and sum up usefullessons to instruct Chinese banks going abroad and maximizing income.Through comparing, we find that even Chinese banks has more stable operations andever-growing internationalization level, there still exists many problems, such as low capitaladequacy ratio and innovation ability, high non-performing ratio, inadequate internationalization level and soon. China’s banking sector should fully utilize the rich resources in home market and expand itsoverseas market share, meanwhile improve the quality of talents and continuously enhancebanks’ ability of operating overseas.This paper is divided into seven chapters. First, introduce the problem of globalization ofChinese commercial banks and do literature review; second review the course of Chinese banks’international operation, evaluate the current situation and point out problems. Third, using factoranalysis to comprehensively evaluate each bank’s international operations capabilities. Thenanalyze two paths of banking sector’s globalization. And pointing out the risks of banks’international operation and how to prevent them. Finally, do summary and outlook.