The Research On The Performance Of Foreign Banks In China And The Influencing Factors

Since foreign banks were allowed to operate in the form of corporate form in 2007,foreign banks are showing mixed performances.There are fierce competitions of various types of banks in China,the financial crisis and the impact of the European debt crisis.Although the scale of foreign banks is rising on the whole,the proportion of the foreign banks is declining year by year.However,due to the strict regulatory requirements,non-performing loan rate and the adequacy capital ratio has been far superior to the average level of China's banking industry.Because of the small scale of the foreign banks,the continuous and standardized information disclosure is not perfect.The research on foreign banks is limited to the reasons for their entry into China and path,the impact on the banking industry of our country and so on.Therefore,how to evaluate the performance of foreign banks in China in the past ten years and what are influential factors are the two problems this paper studied.This paper first combs the theoretical and empirical research on the performance evaluation standards,methods and influencing factors of bank management performance at home and abroad;Secondly,it constructs the performance evaluation system,evaluates the performance of 28 Foreign Banks in China from 2011 to 2016 by using the factor analysis method based on Topsis improvement,and analyzes the impact of performance factors.In the end,this paper uses the panel data to carry out regression analysis and tests the impact of influencing factors on the performance evaluation index of foreign banks in China.The results show that:(1)the scale of development has the greatest contribution to the performance evaluation of foreign banks in China,followed by profitability and risk resilience.(2)The operating time of foreign banks in China,the degree of urban coverage,China's exports to the home country are positively related to the size of their assets when the size of the parent bank and the net interest income are negative.(3)The time in China,the net interest income of the parent bank,the export volume,the level of home country inflation and the net interest income of parent banks are positively related when distance between the two countries and OFDI are negatively related.(4)China's OFDI to the home country is positively related to its capital adequacy ratio when operating time,exports and the economic growth of the mother country is opposite.It suggests foreign banks in China should improve their participation in the process of foreign investment,the degree of professionalization in export service,the reasonable expansion of the scale,the advantages of the technology and experience,and the improvement of the localization degree in China.