| Since the end of the 20 th century, the emerging market countries have sped up the pace of financial liberalization. After joining the WTO, China is also gradually to open the banking sector, some big commercial banks successively introduced foreign ownership. But due to the limitation of the Chinese government, foreign ownership ratio in Chinese commercial banks is relatively small. Facing new international competition situation, whether the Chinese government should further open foreign ownership ratio of commercial banks, depends on the foreign ownership is really beneficial to their business performance improvement. However,there is no uniform conclusion about the effectiveness of introducing foreign ownership to their business performance and optimal proportion of foreign ownership.In this paper, first of all, according to the theory of corporate governance, we analyzed the mechanism of the effectiveness of foreign ownership to commercial banks’ business performance from internal governance and external governance. Then we measured the operating performance of 50 typical commercial banks of the “BRICS” from 2005 to 2014 by three-stage DEA method, and studied the correlation between foreign ownership and operating performance by panel data analysis method. Finally we draw the following conclusions:The empirical results validated the conclusion that the introduction of foreign ownership to commercial banks will promote their operating performance; We further found that with proportion of foreign ownership increasing, the pure technical efficiency of commercial banks will rise in the first stage but then decrease as inverted “U” shape, and obtain maximum at37.35%; In addition, the larger commercial bank is, the smaller positive impact of foreign ownership on its operating performance will be. These conclusions have an important reference value for China to develop and adjust the current policy about the proportion limit of foreign ownership in commercial banks. |
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