A Research On The Impacts Of Entry Model And Degree Of Internationalization On Chinese Bank’s Performance

Under the impetus of the world economic globalization and financial integration,the global political and economic interaction among countries are more frequent.At the same time many enterprises are expanding foreign trade and the growth of foreign direct investment are rapid.so the ability of cross-border services in the commercial bank is put forward higher requirements.As the restrictions that foreign Banks enter Chinese financial markets are eased,Chinese domestic banks face strong competition pressure. Internet financial and non-banking financial institutions have sprung up everywhere, making profit space of banks narrow.Moreover,by reading international literature on bank,we find the literature mainly studied influence factors on the location selection of Chinese bank internationalization, the pattern of foreign direct investment and influence factors, the influence of foreign Banks enter in Chinese Banks.The effects on bank performance of the Chinese banking cross-border m&a behavior. But research of the impacts of Entry Model and Degree of Internationalization on Chinese Bank’s Performance e is less.Therefore this paper has theoretical significance and practical significance to discuss the relations between the two different entry mode, the degree of and internationalization of Bank by empirical analysis methods.This article selects eight Chinese banks that have been engaged in international development as samples and factors affecting the performance of the bank to explore..First of all, define the relevant concepts and summarize related research.Secondly through the current situation of the bank internationalization,we found that Chinese banking industry transnational business already has some achievements.The bank’s overall layout of overseas organizations cover six continents with over 40 countries and regions, but but there is a gap with developed countries,internationalization level remains to be further improved. Furthermore the paper proposes four hypotheses concerning the relationship among international entry model, the degree of internationalization and bank performance on the basis ofrelevant theoretical research and analysis of the current situation.We use the empirical analysis to verify this hypothesis,finally found that all four hypothesis are true.Specifically cross-border greenfield investment model has a positive impact on bank performance in China.While the transnational merger and acquisition is a negative impact.Meanwhile the impact of the cross-border greenfield investment on improving bank’s performance are more effective than that of transnational mergers and acquisitions.About the relationship between bank performance and the degree of internationalization shows a "U"-shaped curve.Finally, this paper summarizes research conclusion, puts forward related Suggestions and points out the deficiency and prospect of research.In order to improve bank internationalization behavior positive impact on Banks’ overall performance, bank should pay attention to several aspects.First of all, the bank should grasp policy opportunity in our country and take advantage of emerging economies in recent years.Secondly, when entering overseas markets, manager should conduct a comprehensive analysis of their own strength, development status,business objectives and environment of the host country.Actively bank should choose different modes to establish branches with the purpose of enhancing the degree of internationalization and thereby improve overall performance of the bank.Finally, in the process of internationalization should focus on accumulation of experience and learning of knowledge about transnational business. Bank should raise absorption speed to increase the performance.The ability to integrate relevant cultural banks to establish foreign institutions after the resources and manpower, reduce integration costs and improve integration efficiency, shortening the period of integration, thereby improving bank performance.