Study On The Performance Of Foreign Banks In Chinaand The Influencing Factors

Entering the Chinese banking industry for almost ten years, the foreign banks in China had not showed a good performance as expected. How are the performance for foreign banks in China, what factors influence the performance for foreign banks in China, these questions worth to be discussed? So, a full picture review for the performance of foreign banks in China and the analysis related to influencing factors have an important theoretical value and practical significance.On the foundation of stating some basic theories, this thesis summarized the literature review from overseas and domestic scholars related to the evaluation for the performance of commercial banks and the influencing factors. After making the definitions for foreign banks in China and Chinese commercial banks, the current situation of foreign banks in China for development scale, geographical development, operating development, development strategy and development performance are following. After building up the index system of influencing factors, the performance of foreign banks in China will be explained through Factor Analysis via the annual report data of Year 2012 from 22 sources. According to the empirical result, the factor named “profit and operating ability” has the biggest impact for the performance of foreign banks in China, and the factors named “development ability” and “asset quality” also have its influence. After that, in the regression analysis for the influencing factors of performance, three explanatory variables have significant impact: operating duration, number of branches and the nature from Asia district.At last, after summarizing the key parts of the full text, this thesis made some advice for how to improving the performance of foreign banks in China and pointed out the direction for further study.