Research On The Influence Factors On Foreign Banks’ Performance In China

The number of foreign bank branches in China is increasing fast and there are 40 foreign banks in China by the end of 2015,and the total branches have surpassed 1000 by 1044.The foreign banks in China are developing fast and the foreign banks are expanding business in China’s market.However,the related literature on the foreign banks in China is really scarce because inadequate disclosure of data and inconsistent data size.Firstly this paper describe the development history of foreign banks in China by macro reviews,and then describe the current situation of foreign banks in China use concrete data.Then use the DEA model to measure the efficiency of the foreign banks in China,and use these results to characterize the performance of the foreign banks in China.And describe the performance of the foreign banks in China by time line and by geography,and compare the performance of the foreign banks in China individually.Then use the DEA efficiency value as the dependent variable,add all relevant factors affectin g the perfo rmance of foreign b anks as the independent variable,then set up the Panel regression models,and innovatively add in foreign parent bank’s overseas scale to this model,find that forei gn parent bank’s overseas scale,the assets of f o r e i g n b a n k s i n C h i n a,t h e t r a d e i n d i c a t o r s b e t w e e n t h e f o r e i g n c o u n t r y a n d China,the level of development of financial markets about the foreign banks’ home countries,the interest rate spread between foreign country and China as well as the China’s GDP growth rate will significantly improve the performance of foreign banks‘ branches in China.Finall y,make some recommendations on foreign banks’ further development in China and internationalization of Chinese banks according to the regression results.