A Study On The Development Strategy Of China 's Commercial Banks' Cross - Border RMB Business

Since the current cross-border RMB business research is mostly carried out from the perspective of macro or micro economic perspective, seldom considering the view of commercial banks. From the perspective of development of commercial banks, after comprehensively analyzing the elements that affect the cross-border RMB business of commercial banks, such as environment, opportunities and challenges. E.T.C. the paper applies a complete framework to analyze the business model, product innovation focus, risks and trends of the cross-border RMB business of commercial banks efficiently, so as to bring forward specific strategies for the development of the cross-border RMB business of commercial banks.Firstly, starting form reviewing the policy evolution, the paper studies on the history, opportunities and challenges of the development of the cross-border RMB business in the commercial banking industry, then through the combination of theory and practice, analyzes the factors that affect the development of the cross-border RMB business of commercial banks. One hand, the macro factors such as acceptability of RMB, China’s economic strength, the scale of international trade, the RMB:s cross-border circulation channels impacts greatly. One the other hand, from the micro perspective, the demand of enterprises and non-residents is the major driving force for the business development, with the operation ability of commercial banks as an important auxiliary. Meanwhile, the paper also uses case study to study the factors that affect the cross-border RMB business of commercial banks, and also uses comparative analysis, combined with commercial banks business practice to analyze cross-border RMB business, so as to provide theory basis for the strategy research.Commercial banks boast of advantages of risk-averse, convenient procedures, strengthening of RMB asset allocation, access to RMB appreciation and so on in cross-border RMB business. Facing the specific business needs of enterprises and non-residents, the commercial banks have implemented a variety of services in RMB cross-border settlement, trade financing, cross-border investment and financing, cross-border financial services under the framework of the RMB internationalization. The paper carries out an in-depth analyze toward the above business model, focus on the important factor that the current RMB enjoys a high possibility of appreciation, studies the cross-border RMB business product innovation, meanwhile, illustrates the risks that cross-border RMB business of commercial banks faces, and then look ahead into the future of the business, in order to lay a good foundation for the policy making.On those basis above, the paper comes up with the specific strategies for the development of the cross-border RMB business of commercial banks in business positioning, product innovation, promotion and risk management and so on, to provide certain references to the specific practices of the commercial banks. On the face of important external environmental factors such as RMB internationalization, exchange rate formation mechanism reform, interest rate marketilization, financial disintermediation, which have a great influence on the operation model and profit basis of the commercial banks, the commercial banks with certain operating strength, should set out from the perspective of restructuring development, to emphasize the development of the cross-border RMB business, to combine cross-border RMB business with traditional business in the main business areas of the business assets, liabilities business, intermediary business, financial services business and so on, and meanwhile, under the premise of risk control, to center on the core elements of cross-border RMB investment and financing, offshore RMB business, RMB international pricing and so on. In the consideration of regional economic characteristics and customer needs, the commercial banks are expected to carry out RMB product and services innovation positively and to seize a golden opportunity in the RMB internationalization in order to win the business dominance on the globle markets.