The Influence Of Internationalization Of CNY On China’s Commercial Banks

The CNY internationalization has started. Especially, the successful start-up of the trial of settlement with CNY for cross-country trades in2009indicated that CNY internationalization had entered a new stage. As the main player in the financial market, commercial banks are the mainstay of currency operation and currency circulation. The CNY internationalization will impose a profound influence on the development of commercial banks.The discussion in the article is based on theoretical research and international experiences and adopted empirical analysis, normative analysis, comparative analysis and quantitative analysis methods. On the basis of referring to the existing academic research results at home and abroad, it analyzed the influence of CNY internationalization on China’s banking industry from different viewpoints and different aspects.The article firstly discussed the theory of the influence of currency internationalization on the banking industry and learned from the experiences and lessons of the internationalization of the USD, JPY and Euro, analyzed the possible influence of CNY internationalization on China’s banking industry. Next, referring to the historical opportunities and realities of CNY internationalization, it briefly discussed the process of CNY internationalization. Then, it analyzed the influences of CNY internationalization process in which CNY acts as a settlement currency, financing currency and a reserve currency respectively on the business environment and business strategies of China’s banking industry. Afterwards, it discussed the influence of CNY internationalization on China’s banking industry from the following three aspects:risk management, asset management and business management of the banking industry. In the end, it made conclusions based on the foregoing analyses and brought up suggestions on the related policies.