The Impact Analysis Of The International Settlement Business Of Commercial Banks In China

Along with the advance of interest rate liberalization in China, and together with the innovation of the financial products, the income from traditional assets and liabilities business will not meet the demands of the commercial banks’ need. The international payment business is an important intermediate business. So for the joint-stock commercial banks and state-owned commercial banks, it’s important to gain market advantage by developing international payment business in the financial industry market which takes the increasingly fierce competition now. At the same time, with the development of world economic integration and China’s international trade, international payment business will be needed by more customers, so how to develop the international payment business will be an opportunity and also a challenge for both state-owned and joint-stock commercial banks. So far, the International business is in a new field in China. Actually this business develops quite fast during recent years. In addition to banks which started the international business quite early historically, like the Bank of China, other banks are quite new in this field. According to the international experience, the international payment business takes low risks but gets more benefits, and international business can also make deposit and loan businesses, foreign exchange businesses, intermediate businesses and other businesses, and create deposit and loan income, exchange income and fee income and other income of intermediate businesses for the banks.In the paper, from the point of the commercial banks, through the analysis of the present situation of the international settlement business in joint-stock commercial banks and state-owned commercial bank-products from the scale of international payments business, organization setup, total assets of such comparison of influencing factors, and found that the factors such like the international trade amount, the foreign investment amount, promote the development of the international settlement business, and the exchange rate has a negative influence on the international settlement business. At the same time, the factors like the asset owned by the banks, the human-resource and the aboard institutions all have positive influence on the international settlement business.