Research On The Internationalization Of Commercial Banks In China

Under the context of the world economy,our country followed the steps of international economics development and gradually opened up the financial sector,which substantially enhanced the structure and environment of the financial sector,traditionally state-owned Chinese banks gradually evolved into policy banks,commercial banks,joint-stock banks,credit unions and other forms all integrated in one banking system.Information age requires companies to seek reformation,development of the economy also requires supplementary virtual economy.In 2015,RMB was adopted in SDR,interest rate marketization is no longer an empty phrase on paper,the economic globalization brought RMB to the world stage,the bank as a medium of currency has become globalized and is no longer limited to local development.China gradually opening up the financial markets prompted Chinese banks to follow the footsteps of global development,tightly following the enterprises into the international markets.The international development strategy is the strong back shield of commercial banks seeking global presence,and also where the directions lies.This paper stands from a comparative perspective,comparing and contrast the domestic banks with a high degree of internationalization and foreign banks in developed countries,analyzes the Chinese commercial banks' internationalization under the context of financial globalization,the present management situation,business motivation,influencing factors of international operations of Chinese commercial banks.The analysis found that China's commercial banks' international operations have achieved sustained and rapid development,but there are also some problems at the meantime,such as too concentrated on the regional distribution,the single mode of entering the host country and so on.The influencing factors of international operations can be analyzed both internally and externally: the interior influencing factors include the size of the bank,operational efficiency,asset quality,reputation,brand and oversea operating experience etc;the external influencing factors include the home economy and the degree of development of the financial system,the host economy and openness of the financial system,the host culture,home and host countries trade relations and market potential of the host country.This paper also analyzes international operation of Citibank and Industrial and Commercial Bank of China to seek experience for reference.After the analysis of theory,data,and cases of the internationalization operations of our commercial banks,this paper proposes strategies from internal and external perspectives to accelerate and deepen international operations of our commercial banks.From the internal standpoint,first of all,we should strengthen the risk management capabilities to meet the challenges of financial globalization;second,banks must develop more strategic scenarios,flexibly adjust the mode of operation according to different risk factors;third,banks must innovate financial products and services to adapt and lead the trend;then,in the information age banks have to timely update the information technology and increase the protection of information technology;and finally,we must increase the training of international professionals.From the external perspective,first of all,China's banking industry need to integrate resources,avoid vicious competition;second,we should improve the mechanism of competition in the banking sector,avoid monopoly behavior;third,the government should strengthen multilateral cooperation in trade with other countries and encourage foreign direct investment,through economic exchanges to promote the international development of banks;then,the government should improve the construction of China's financial markets and derivatives markets;finally,government shall strengthen the services,guidance and supervision.