The Impact Of The Introduction And Reduction Of Foreign Strategic Investors On The Risk Of Chinese Banks

The most important thing in the modern economy is the financial industry,the banking industry is the main body of the financial industry.Modern banks with good profitability and risk control are of great significance to the economic construction of a country and the steady and healthy operation of the national economy.In order to meet the needs of economic reform and sustainable development,China's banking industry in the strong support of the government under the continuous reform,hoping to improve operational capacity,management capacity and risk control capabilities,so the introduction of foreign strategic investors.From 1996,China Everbright Bank for the first time introduced to the 2015 China Postal Savings Bank during the investment,the Chinese banks from the active introduction of foreign strategic investors to be cautious.Theoretically,the introduction of foreign strategic investors can effectively curb the risk of Chinese banks.However,the domestic and foreign research literature,the introduction of foreign strategic investors on the impact of bank risk views,and foreign strategic investors and bank risk relationship research is relatively small.Therefore,based on the analysis of whether the strategic investment is effective in restraining the risk of China's commercial banks,this paper further analyzes whether the reduction of overseas strategic investors increases the risk of Chinese banks,validates whether Chinese banks are effective in learning and absorb foreign advanced risks during cooperation Control technology and risk management,to achieve the purpose of foreign investment.At the same time,it also analyzes the influence of the investment model and the individual characteristics of the overseas strategic investors on the bank risk.From the domestic and foreign research literature,this article mainly collated the influence of the overseas strategic investors on the performance and risk of the host country bank.Based on China's basic national conditions,this paper summarizes the research literature at home and abroad are mainly concentrated in the following three aspects: First,China's commercial banks whether to carry out strategic investment,the research stage focused on 2005,the period for the introduction of The future of strategic investors outside the peak period;second,the bank performance by foreign strategic investors how to influence;Third,the strategic investment in China's commercial bank risk,the research is relatively small.The relevant literature collation gives us a more comprehensive understanding of the relationship between overseas strategic investors and bank performance and risk.Then,this article has compiled the relevant theoretical basis of the influence of the introduction of foreign strategic investors on the bank's risk.The most important theory is the corporate governance theory,which lays the theoretical foundation for further analysis of the reasons for the overseas investors to introduce and sell overseas shares The at the same time,this paper analyzes the ways to introduce the overseas strategic investors to influence the bank risk,namely the way of corporate governance and the way of management and management.And then combined with the relevant literature and public information to sort out the history of China's banking industry and the introduction of relevant reasons.However,overseas strategic investors in 2008-2013 during the two large-scale sale of Chinese banks shares.In view of the phenomenon of selling,this article also highlighted the basic situation of reduction and reduction reasons.The empirical part of this paper includes several aspects of research hypothesis,model construction,data source,empirical analysis and robustness test.In this paper,27 Chinese banks with foreign strategic investors are selected for the period from 1996 to 2015,and the individual and time fixed effect models are selected for empirical analysis.The empirical results show that the introduction of foreign strategic investors has a negative effect on the risk of Chinese banks.After the investment,the impact of the shareholding ratio on the bank's risk is negative and significant.The risk management ability of Chinese banks has been further improved during the cooperation period,After the reduction of bank risk did not significantly improve.Second,a number of attracting investment model than the single-funded model is more likely to produce "free rider" behavior.Thirdly,foreign strategic investors in different regions have different effects on the risk of Chinese banks because of cultural differences.In contrast,foreign strategic investors from the European region can play a role in curbing the risk of Chinese banks.Fourth,the risk of Chinese banks changes with the size of assets,was U-type relationship.Finally,the impact of CPI and interest rate marketization index on bank risk is not significant.The strategic investors and different investment models with different individual characteristics have no significant increase in bank risk after reduction,but after the reduction,the international banking background of the strategic investors play a due role,with a certain delay effect.Combined with the empirical results,this paper in the last section of the relevant policy recommendations,including the maintenance of national financial security on the basis of appropriate relaxation of the proportion of shareholding restrictions;careful selection of investment models and partners;improve the strategic exit of foreign investors and enhance the mechanism Their own risk management capabilities and risk control capabilities.