Comparison Of Competitiveness Of Global And Domestic Systemically Important Banks And Suggestion To Internationalization Of China’s Banks

SIBs are those banks, whose failure could cause systemic risk to thefinancial system, trigger a financial crisis, damage stability of the financialsystem and the real economy.Firstly, based on the assessment indicators created by BaselCommittee and Financial Stability Board and domestic criteria made byCBRC, we assess systemically importance of China’s16listed banks.Then we compare internationalization level of global and domestic SIBsby distribution of overseas institutions, proportion of overseas income,product structure and others. Besides, we use factor analysis model tocompare global and domestic SIBs’ comprehensive competitiveness. In theend, we summarize current internationalization path and problems ofChina’s banks and give suggestion to this situation.Through our analysis, we find that there exists a big gap betweenbanks at home and abroad in aspects of overseas institutions distribution,product innovation and risk management capability. Although China’sbanks do better in per capita income, growth potential and profitability,there are a lot for them to improve. Thus, in future process ofinternationalization, China’s banks should contribute more to formulatingappropriate development goals, improving risk management mechanism,enhancing business innovation and cultivating international talents.