Problems Research On Domestic Commercial Bank Developing Cross-border RMB Settlement

In2009, the people’s Bank of China and other six ministries launched" the pilot management project of Cross-border RMB Settlement", which is a symbol of starting cross-border trade RMB settlement. Allowing cross-border RMB settlement is a significant beginning of RMB regionalization and internationalization, in which the domestic commercial banks play an important role, and benefit from it. According to economic of scope theory, developing cross-border RMB settlement helps the domestic commercial banks expand the scope of business, reduce cost, improve earnings. Based on the theory of scope economy, this paper takes the domestic commercial banks as the research themes. After analyzing the business practices of domestic commercial bank in more than two years, the author takes bank which she works in as a sample, reveals the problems and causes. Finally, the author, though the PAC-SR factor, gives the suggestions to the domestic banking industry that how to create conditions for developing cross-border RMB settlement to enhance core competitiveness ability, and play a role on the international financial arena with the regionalization and internationalization of RMB.Article is divided into six chapters. The first chapter is an introduction, through the existing research literature and the main view, it designs the paper’s research framework, defines its background and significance, while, also the research methods and technical routes. Chapter second is the research of commercial banks developing cross-border RMB settlement theory. The first section is the definition of economies of scope. The second section is the demonstration of the domestic commercial banks carrying out cross-border RMB settlement. The author respectively use two ways, which are cost income ratio and asset specificity, to prove theoretically, domestic commercial banks will enjoy the economy of scope through the development of cross-border RMB settlement. The third chapter, survey on domestic commercial banks cross-border RMB settlement situation, reviews the process of the business firstly, and then describes the existing framework of the business, at last analysis the national and Shanghai cross-border RMB settlement development situation. The fourth chapter shows the situation, problems and causes of cross-border RMB settlement in Ping An Bank. In this chapter, the bank where the author works in is used as a sample. From two years practice experience, the author reveals the problems which domestic banking sector encounters and the reasons why the economy of scope haven’t appeared in the banking. The fifth chapter mainly gives recommendations for the banking to promote cross-border RMB settlement. This chapter is on the basis of the fourth chapter, reveals how to create conditions to expand cross-border RMB settlement scale. Establishing PAC-SR factor, the author gives constructive suggestions to the domestic banking industry. Chapter sixth is the conclusion of the paper and prospect of the author. It reaches the research conclusions of the paper and explains the limitations of this study. It also points out the issues and direction for further research.