The Research On The Influence Factors Of China's Commercial Bank Cross-Border RMB Business

Cross-border RMB business has been developedat a fast-growing speed and its good conduct is of great significance for the internationalisation of the RMB. Commercial banks play an important supporting role in the development of cross-border RMB business. Commercialbanks also can have huge benefits and accelerate the internationalization of their business. This paper analyzes and solves problems from the perspective of commercial bank management. On the basis of the analysis of the factors affecting the cross-border RMB business, this paper puts forward the countermeasures and suggestions in order to promote the development of cross-border RMB business of commercial banks.Firstly,this article expounds the basic theory of currency internationalization, the condition of currency internationalization,RMB internationalization theory and influence of the internationalization of the RMB on commercial banks. Secondly, this paper introduces thedevelopment process of cross-border RMB business for commercial banks in China systemically. Furthermore, it analyzes the influence factors of cross-border RMB business development of commercial bank through the combination of theory and empirical methods. From the point of macroscopic factors, China's economic power, the development of offshore financial market, the stability of RMB, the changes of RMB exchange rate and other factors are more prominent. From the point of microcosmic factors, the internal and external linkage, business innovation, risk management ability, professional and technical factors of cross-border RMB business of commercial banks are also more prominent. Empirical analysis chooses macro factors as the research target. In term of the empirical results, the development of offshore financial market and exchange rate level have more influence on the cross-border RMB business development. Finally, according to the results of theoretical analysis and empirical analysis, more targeted countermeasures and suggestions are put forward to promote our country commercial bank cross-border RMB business development.Cross-border RMB business is still on its initial stage, but it will maintain the good momentum of growth in the future, and has gigantic development potential. cross-border RMB business benefits the internationalization of RMB and execution of policies about the central bank. It can also bring more settlement and financing options for the enterprise and improve the international competitiveness. For the commercial banks, it can bring huge economic benefits to commercial banks considering the international settlement and trade finance, integrated financial services that it involves. Facing the important external environment factors of the national macroeconomic regulation and control guidance, exchange rate formation mechanism reform, interest rate liberalization that profoundly affected model of the commercial bank business and profit, commercial banks should start from the angle of the transformation of development, attaching great importance to the development of cross-border RMB business and improve the ability of business innovation and lay emphasis on combining cross-border RMB business and traditional business organically in the business field. Also, commercial banks should consider to save transaction cost and enlarge the scale effect when implementing cross-border RMB business so as to ensure the processing efficiency and information security of the cross-border RMB business.The necessary technical support is inseparable, especially for the development of the settlement system. At the same time, in order to provide guarantee for cross-border RMB business development,commercial banks should enhance the ability of risk management, consolidate the high quality customer resources.