The Case Analysis Of ICBC’s Acquisitions Of The Argentina Standard Bank

With the increasing of economic globalization and financial integration, theglobalization of Chinese banking has becoming the main trend today. However,according to the power of the large banking, globalization is the best approach to expandtheir sphere of influence and self competition. At the same time, a great impact has beenlocated to Chinese banking, which leads them to the tendency of globalization anduniversal. Since2007, China has begun to open banking market; the influx of foreignbanks makes the banking industry competition more intense, which also makes Chinesecommercial banks recognize that they must further accelerate the pace of transnationalmanagement, enhancing the degree of internationalization of banks, so as to strengthenthe international financial market competition.Banks overseas expansion is the basic premise of financial industry to participate inthe world competition; it is also a trend of banking development in today’s world. Themodern banking industry will not only face the competition in the domestic market, butalso face the competition form the global market and every corner of the world. So moreand more commercial banks take expansion of bank scale and expansion of bankbusiness by expanding overseas as its development strategy. With the furtherdevelopment of Chinese reform and opening and the growth of Chinese nationaleconomy, the commercial bank entered the golden era of rapid development, overseasexpansion is on the rise quietly. Expand overseas entry model is usually understood as akind of system arrangement, which is the basis for enterprises to entry overseas marketstrategy, the choice of the entering overseas market model is the core content ofenterprise internationalization decision strategy, to the enterprise, whether the entrymodel selection is scientific or not is directly affect the performance of enterpriseinternationalization management. Therefore, there is more realistic significance forfurther study of Chinese commercial banks overseas expansion model selection problem.In this paper, it will take the Industrial and Commercial Bank of China merge andacquisition the standard bank of Argentina as an example, combined closely with thepractice of transnational operation of Chinese commercial banks, based on several basicexpansion forms, starting from the motives of overseas expansion of Chinese banking industry, focusing on the selection of Chinese commercial banks overseas expansion, toexplore the factors which influence the entry model, and point out that which entry modelChinese commercial banks should choose to expand overseas market in the current andfuture.From the development process of global banking overseas expansion, constructionis the main way of early overseas expansion for banks, in1980s later, with theaccelerating trend of financial globalization; the western developed countries launched alarge cross-border merge and acquisition of banks time and time again. Transnationalmerge and acquisition avoid all sorts of barriers what may encounter with theconstruction model, which provides an effective way for banks to enter new markets, andhas become an important way to realize the internationalization of banks to expandoverseas business. Therefore, this paper believes that with the continuous developmentand growth of transnational operation of Chinese commercial banks, the entry model ofoverseas expansion should be mainly from construction to both construction andtransformation gradually.