Influence Of The Internationalisation Of The Renminbi On Commercial Banks In China

In the recent year,under the driving of China’s excellent situation and perfect policy, the economy of China develops better and better not only in domestic economic market but also in the foreign trade. Total trade volume rises and the scale expands. China’s economy links more and more closely with the world’s economy. Therefore, the renminbi begins to emerge in the international arena and behaves more and more actively. Its influence in the international arena is also growing. Commercial Banks always occupies a pivotal position in economic activities. For the one reason, it is the main body of monetary operations. Second, It is the backbone of the currency. Absorbing the social idle funds to store money makes money flow in and making loans to money demanders to makes money flow out. By this means, money flows and resources are allocated reasonably. Third, commercial banks are important parts of financial market. A lot of enterprise economic activities are inseparable from the participation of commercial Banks. Enterprise financing, settlement and other business are impossible without commercial banks. Lastly, Commercial Banks can support the implementation of monetary policy. Monetary policy cannot work after proposed without the banking system taking measures. Visibly, there is very close relationship between commercial Banks and monetary. So it’s not hard to foresee, the internationalization of the renminbi will undoubtedly have a far-reaching impact on commercial Banks. the impact can lead to good and bad aspects. How to study the impact thoroughly, expanding good aspects and avoiding bad ones, is a very worth studying subject. It has great practical significance.The thesis based on the research both in theory and practice, absorbs the superb scholars academic conclusions from domestics and abroad, through the methods of data analysis, comparative analysis, and empirical analysis, analyzing the impact to China Commercial bank arise of the RMB internationalization from multiple perspectives and ways. During the process of data analysis, enormous data was put in and finally reach a conclusion by the analysis in vertical and horizontal and the comparison between domestic and international surroundings. Meanwhile during the empirical analysis, the condition and opportunity of money approaching to realize internationalization gradually was also listed, e.g. Dollar, yen, euro etc. And through comparing these different paths, aim to find a suitable and feasible way for RMB development. While most of the difficult during research ws the useful data acquirement from the ocean, and it’s very hard to measure the impact to commercial bank by part of the objective facts. After all the innovation in article is persevering from a microcosmic angle in the current special national conditions that different from other developing countries to study the impact to commercial bank by RMB internationalization process, and puts forward the feasible suggestions on it as well.The thesis is divided into five chapters. In the first chapter, the research background and research significance of choosing this topic are presented. Also, this chapter lists the past study on the issue by experts and scholars at all times and in all countries. Then in this paper, the research methods, difficulties and innovations are instructed. In the second chapter, the related concepts of the internationalization of the renminbi are first expounded, and the evaluation standard to measure the degree of internationalization and the calculation formula are also given. Then from six aspects(the status of the renminbi as a settlement currency in cross-border trade, the renminbi’s direct investment condition, the renminbi’s securities investment condition, the renminbi’s overseas credit market situation, the present situation of renminbi as the other countries’ official reserve currency, and the development of the offshore market status and foreign exchanges of the renminbi), the status quo of the RMB internationalization is thoroughly and carefully analyzed. In the third chapter, it includes the theoretical analysis of the renminbi’s internationalization to our country’s commercial banks. This issue is analyzed from the optimum currency area theory, currency substitution theory and financial deepening theory. The instance analysis of dollar, yen, euro’s internationalization are introduced in these three theories in order to better explain the related theories. In the fourth chapter, the influences of the renminbi’s internationalization to our country commercial banks’ asset management, risk management, business management, etc are objectively and clearly studied by using a large amount of data. In the last chapter, for the impact mentioned above, practical advice on the risk management, asset quality, innovation, business development, personnel training, network building and so on is offered.