Foreign Banks Operating In China Performance Analysis

Foreign banks have entered into China in succession since carrying out thereform and opening policies. In December,2012, China entered World TradeOrganization (WTO), and the banking be opened firstly. There were more and moreforeign banks entering into China. In2008, with the deceleration of Lehman BrothersHoldings Inc’s bankruptcy liquidation, a global financial crisis swept the world,brought heavily maul to international financial and the real economy. However, as anemerging economy, China still has procured fast economic growth attracting more andmore foreign banks.The entering of the foreign banks has also caused the extensive concern bydomestic and foreign scholars. And the researches on the development of foreignbanks in china are becoming focus in the financial field. However, most of theresearch qualitative analysis the effect of foreign banks development on the domesticbanks, ignoring the effect of self-parameters on the foreign banks. It is well knownthat the research on the effect of self-parameters on the foreign banks could providereference for the development of domestic banks. Therefore, it is an significantsubject.There are too many factors affecting foreign banks, the development of foreignbanks in China could not be described by a mathematic model so far. However, theartificial intelligent algorithms which are suitable for small samples, have obtainedgreat achievement in various fields, could be applied in this problem. It is a pity thatthese algorithms have not been applied in this problem so far. On the other hand, it isprospected that the most suitable parameters for foreign banks could be obtained toguide them.On account of above reasons, the contents of this paper are as followings:Firstly, this paper analysis the current situation of foreign banks in China. Thefactors that have influence on the net profit are concluded as follows: operatingrevenue, total assets, loan value, outstanding of deposit, shareholder equity, capitaladequacy ratio and the time-related factors such as policies.Secondly, related data among the years from2007to2010of four famous banksincluding Hongkong and Shanghai Banking Corporation, Citibank, StandardChartered Bank and The Bank of East Asia are counted. Support Vector Machine is selected as the modeling tool, using the factors such as operating revenue as the inputdata, and the net profit is selected as output data of the model. Basing on the model,the relationship between the influencing factors and the net profit is analyzed.Thirdly, the net profit of Standard Chartered Bank in2009is taken as an example,the Ant colony optimization algorithm is employed to obtain the optimum value ofvarious influencing factors and the net profit, which an provide a certain reference forforeign and domestic banks...