Foreign Banks To Enter The Empirical Study Of Impact On The Efficiency Of Chinese Commercial Banks

With the financial market comprehensive open to foreign banks, foreign banks enjoy "the green channel" treatment in our country, and have gradually become an important component of China’s banking industry, even the entire financial system. It has formed a fully competitive market structure with local commercial banks in various fields.This paper uses qualitative and quantitative, dynamic and static, theory and empirical analysis combined method, and discusses the impacts given by the entry of foreign banks. On the one hand, the entry of foreign capital brings the advanced management, international vision and lots of development opportunities. The domestic commercial banks are facing the competitive pressure not only from the domestic industry, but also from the foreign counterparts. This is helpful to our country banking market operation process and international competitiveness rise, and also promotes the business bank of our country the improvement of the performance index. On the other hand, the penetration of foreign Banks will devour the domestic banking sector of the market share, and affect domestic the survival and development of commercial Banks in China of the entire banking influence efficiency level, thus inhibiting the development of commercial Banks in China.Through the method of DEA CRS, VRS and Malmquist index model, we can get the static and dynamic efficiency of China’s four state-owned commercial banks and10joint-stock commercial banks in2003-2010. And then we qualitatively analyze the changes of efficiency in these years. At last this paper uses Panel Data model to empirically analysis the influence of commercial bank efficiency change lead to the entry of foreign banks.Finally, this paper gives the coping strategies. State-owned commercial banks need to strengthen the cooperation with foreign banks, and pay more attention to personnel training, improve staff productivity, increase the pace of financial innovation, and improve the internal governance structure. Joint-stock commercial banks need to actively lead the domestic banking sector to the development of mixed operations, develop new business, and focus on importing the talents from the community. Banking regulatory authorities need to regulate the entry of foreign banks, and improve financial regulation and the construction of related facilities.