The Study Of Impact On The Chinese Commercial Banks’ Efficiency By Foreign Banks Entry

In order to respond the challenges and the opportunities of the entering of foreignbanks, the paper systematically analyzes the impact, brought by foreign banks, onChina’s commercial banks’ efficiency. The aim of the paper is to promote the fastdevelopment of China’s banking and to maintain the steady of China’s financialindustry. The paper introduces the theory of the entering of foreign banks, andmakes a theoretical analysis of the influences of the entering of foreign banks. Thenthe paper empirically analyzes12representative China’s banks’2001-2010panel data,which indicates that the correlation of the entering of foreign banks and the interestincome and non-interest income of China’s banks is negative and the correlation ofthe entering of foreign banks and ROC and return on equity of China’s banks isapparently positive. The analysis also shows that the correlation of the entering offoreign banks and the total amount of loan reserve rate of China’s banks isunconspicuous positive. In order to promote the healthy development of China’scommercial banks and make finance industry play a role of national economicdevelopment and social stability, we should encourage the entering of foreign banksto increase the whole efficiency of comprehensive strength of China’ s banks. We alsoshould make the financial supervision to be efficient.