Research On The Necessity And Impact On Bank A Introducing Foreign Strategic Investors

Since the implementation of reform and open policy, China’s economy has continued to grow rapidly and the degree of market opening is increasing, especially after the accession to WTO in2001. With the accelerating pace of economic globalization, China’s financial market faces both great opportunities and unprecedented challenges. Financial institutions are an important component of the financial markets, and banks, as the most important financial institutions, are also affected by economic globalization inevitably. As the banking industry has long been relatively monopolized by our country, foreign strategic investors can achieve a higher return on investment on China’s commercial banks. China’s commercial banks can also learn the advanced management experience and risk management techniques from foreign strategic investors to improve international competitiveness. Therefore, the introduction of foreign strategic investors is beneficial to both sides.The first chapter mainly explains the background and significance of the topic of this article, as well as the domestic and international literature review, and analyzes the various effects that the introduction of strategic investors may bring. Chapters II and III introduces the internal strengths, weaknesses, external opportunities and threats of Bank A. In chapter IV, I introduce a SWOT analysis and point out the problems and threats that Bank A faced. In order to solve the problems, Bank A developed a "guarantee growth, adjust structure, control risks, improve profit" strategic objective. Then I point out the strategy that the Bank A decided to take:introducing foreign strategic investors. I analyze the changes and features of the organizational structure, business processes and marketing after introduce the foreign investor. In chapter V, I analyze the impact of foreign strategic investors brought to Bank A. At last, I sum up the inspiration and can be learnt by other banks when introducing foreign strategic investors make a conclusion.