Analysis On The Motivation And Influence Of CITIC Bank Introducing BBVA

With the development of economy,commercial banks play a more and more important role in the economic system of our country.In order to meet the needs of the stable operation of the economic system,the improvement of the level of bank governance and the strengthening of the operating efficiency are very necessary.In the process of economic globalization,China's banking industry has experienced Asian financial turmoil,WTO,shareholding reform and financial crisis.The future trend of China's banking industry is becoming more and more obvious: Taking the government to inject fresh blood into the bank,dissection the bad assets and carry out the restructuring of the financial affairs to solve the historical problems;open up the problems left over by the history;China's financial sector should be set up to carry out the shareholding system reform to realize the reform of property rights system,promote the listing of commercial banks and strengthen supervision over banking industry.After years of unremitting efforts,China's banking industry has made great progress and its comprehensive strength has been improving.In spite of this,there are still many obstacles in the process of banking reform,for example,the diversification of property rights is not truly realized,the corporate governance structure is still difficult to realize modern development,product innovation and risk management still need to be improved.Under such circumstances,the introduction of foreign strategic investors has become a very important means.In order to solve the problem of lack of bank capital and the quality of bank assets and bring positive effect to financial performance,commercial banks in China have begun to introduce foreign strategic investors.For foreign banks,it has great advantages to enter China with the identity of strategic investors.First,because our commercial banks have government credit as a guarantee,for foreign banks,this type of investment risk is very small and can obtain huge profits;second,China's market potential is huge,overseas strategic investors After entering the Commercial Bank of our country,we can use its large number and wide distribution network to expand the customer group and various channels to realize its own development strategy and improve the global competitiveness.However,some cases show that some foreign strategic investment institutions sell commercial bank stocks in the short term and get high returns.Whether the introduction of strategic investors has a positive impact on the financial performance of commercial banks is still a matter of fact in academia.Therefore,it is of practical significance to explore the influence of the introduction of strategic investors on the financial performance of commercial banks under the background of strategic investment by commercial banks.This article selects CITIC Bank to introduce Spanish foreign bank(BBVA)as a typical case to conduct in-depth research.The paper is divided into six parts: introduction,theoretical overview,case introduction,motivation analysis,impact analysis and conclusion inspiration.The introduction part introduces the purpose and significance of this paper by introducing the relevant research background,and summarizes a large number of research results at home and abroad,and introduces the author's own research ideas,research methods and the framework of this paper.The main part of the theory is to analyze the theories related to the introduction of foreign strategic investors,including the three aspects of the governance structure,profitability and risk control,which lays a theoretical foundation for the case analysis below.The case introduction part briefly introduces the background of the case and the situation of both sides,then elaborates on the occurrence process of the case.In the case of CITIC Bank's introduction of BBAV,the motivation analysis part divides the motivation into internal motivation and external motivation.The influence analysis part is based on the analysis system of the influence factors of the part of the theory,and studies the changes of the related data such as the financial index and non financial index of CITIC Bank,and then analyzes the influence of CITIC Bank's introduction of BBVA on the corporate governance structure,profitability and risk control ability in three aspects.At the end of this paper,the conclusion and Enlightenment of this case are summarized,and the following suggestions are put forward for Chinese commercial banks and China's banking industry: first,the management authorities should make reasonable government policies according to the market situation in time;two,it is necessary for the banks to choose the foreign strategic investors carefully.To deepen cooperation,the most fundamental thing is to improve our core competitiveness.The contribution of this paper is to make a thorough analysis of the case of CITIC Bank introducing BBAV.It affirms the positive effect of introducing foreign strategic investors to banks themselves and China's banking industry,and can provide some reference and help for other commercial banks to introduce foreign strategic investors.The innovation of this paper is to use the financial ratio to analyze the effectiveness of CITIC Bank introducing foreign strategic investors.The results show that the most significant change is the promotion of profitability,that is,the improvement of asset income and the efficiency of asset utilization.