The Impact Of Foreign Bank Entry On The Income Structure Of Chinese Bank

Before the reform and opening, our country is very cautious about foreign bank.Util11979, the Export-Import Bank of Japan into China, open the prelude of foreign bank, first open some city and some business, then expended to more and more city and business. Then our country gradually cancelled regional restriction on foreign bank, foreign bank can set up in any city after1999July. Our country join the WTO in December11,2001, further opening up of banking industry. In order to fulfill WTO commitments, from the geographical,client, business has gradually liberalized the restrictions of foreign bank to carry our currency and cancel client restrictions. With the rapid development of our country, the foreign bank rise upsurge of expansion, the foreign bank plays an important roles in our country.Although the entry of foreign banks will inject fresh blood to our country banks-the introduction of advanced technology, scientific management system, enrich the domestic financial derivative products category. For a long time,the income of local banks of foreign banks are mainly interest income, however,as highly diversified operation of foreign banks and other reasons,the portion of interest is very low for foreign banks. Thus, the entry of foreign banks to some extent increased completion situation of China banking industry,bring challenge to our local bank existing revenue structure.This paper will to analysis the impact of the entering bank on the income structure of our country bank.This paper adopt the combining of theory and Empirical method to study the impact of foreign bank entry on the income structure. The first chapter is the background and significance of this study. The second chapter analyzes the course of the development of foreign bank in our country from the point of time, also analyzes the development of foreign bank in our country, find that foreign bank play a more and more important role in our country. The third chapter analysis the status of income structure of our country bank and foreign bank and compared. We mainly from bank intermediate business income account for the portion of business income and income diversification to analysis, we find that State-owned banks intermediate business income accounting and diversification is higher than that the joint-stock banks, joint-stock banks intermediate business income accounted and diversification is higher than that of the city commercial bank. But compared with foreign bank,the bank intermediate business income accounted lower, and lower degree of diversification. The fourth chapter is part of theory analysis, from the completion effect, spillover effect, scale economy effect, catfish effect, human capital effect to analysis the ways and means of the entry of foreign bank into China on our existing banking income structure. The fifth chapter is the empirical part of this paper, using panel date model to analysis.In this paper, use the ratio of intermediate business income and revenue diversification to measure the income structure of our bank, use the ratio of foreign bank asset accounted as the foreign bank entering degree, also set up a foreign bank entry dummy variables,other variables are asset scale, net interest margins, loan accounted for the portion of total asset. With the development of city commercial bank, and the city commercial bank are larger, so the city commercial banks are added to the samples. Considering our country bank is divided into three different types, so for different types of bank use different regression analysis, find that the impact of foreign bank is different from the influence degree,infulernce of foreign bank entry on State-owned bank intermediate business income accounted for higher income, higher degree of diversification. After the entry of foreign bank, State-owned bank are under the pressure of completion and active learn, the ratio of intermediate business income increase, bank is the same as the State-owned banks, intermediate income portion, diversification of income, but the impact on the income structure joint-stock banks is smaller than the State-owned bank. The city commercial bank at the present stage is rare of immediate business, and the foreign bank are also rarely enter the small and medium-size city, therefore the entering of foreign banks has litter effect on the city commercial bank income structure, statistics of foreign bank to enter is not significant.At the end of the paper, relevant policy is recommend on the impact of income structure of our country bank. Facing the completion of income structure of foreign banks and the market of current interest rate, our country bank must change the current over reliance on interest income, improve the diversification of income source.We must raise the consciousness of income transition,improve the diversification of income, so that it can remain invincible in the completion with foreign bank. On the other hand, China bank should accelerate the development of intermediate business, our banks differ greatly in the intermediate business compared with the foreign bank, the intermediate business income accounted low. Therefore,in the face of foreign banks, our banks have to improve the learning ability,to learn foreign in the development of intermediate business,in the advanced experience and practices. At the same time,China bank should accelerate the introduction of relevant personnel, the transformation of revenue structure aspects relevant to the needs of professional talent resource is the most important resource.