Study Of Internationalization Of Chinese Commercial Banks In The Context Of Internationalization Of Chinese Currency

Trends of global economics development show that currency internationalization is a prerequisite for a country to take up an important role in the global community.Ever since China opened up its market,the overall strength of our country has been increasing.The landmark success of 2009 pilot project on cross-border settlement business in Ren Min Bi("RMB")was a historical step in the process of RMB's internationalization,signaling the internationalization of the RMB proceeding into the stage of rapid development.Accelerating the process of internationalization of the RMB relies on the support from Internationalized commercial banks.In turn,it has also further facilitated the process of major financial market players,i.e.the commercial banks,developing globally to a whole new level.This article first introduces the relevant theories of currency internationalization and commercial banks internationalization.Introduction of the former includes currency substitution theory,optimal currency area theory and the theory of financial deepening,and the latter covers international trade theory.internalization theory,international eclectic theory,risk aversion theory and the theory of economies of scale.Later on the article connects the theories with the status quo of internationalization of RMB and commercial banks,discussing issues such as cross-border trade in RMB,RMB direct investment,portfolio investment of RMB,the development of offshore RMB market and China's commercial banks cross-border RMB business,status quo of overseas branches of Chinese commercial banks,their mergers and acquisitions and the introduction of strategic investors,etc.,elaborating in length on the full process of RMB internationalization and China's commercial Bank international development.Based on the overall situation of China's commercial banks,this article conducts a comparative analysis of banking industry domestic and abroad in terms of stage of development.stocks ownership structure,market environment,profit model and purposes of internationalization,summarizes the successful experience of internationalization of major global banks,and draws valuable reference therefrom which could be useful for the internationalization of China's commercial banks.Finally,the article makes several recommendations regarding how China's commercial banks should continue to develop against the backdrop of RMB internationalization.including expanding the strategic thinking of international operations,increasing the innovative level of bank products relating to internationalized RMB,establishing a global RMB settlement system,optimizing the regional layout options,consolidating domestic and international customer base,and improving operational risk management of overseas branches.China's commercial banks are still in the preliminary stages of internationalization.Many problems need to be resolved with respect to institutional improvement and management.There is still big disparity between the internationalization level of China's banks and and those in developed countries.In the light of the globalization of economy.this article highlights on its policy recommendations regarding how to improve market competitiveness of China's commercial banks by learning from the international experience and following such trends so as to accelerate the internationalization process of China's commercial banks.