Can Overseas Strategic Investors Improve The Risk-bearing Capacity Of Commercial Banks?

Following the pace of reform and opening up,the Chinese banking industry has continuously deepened reforms and expanded opening up.China's banking industry has built a banking system in the early stages of reform and opening up,then to shareholding reforms,and then deepened reforms,accelerating listing and introducing foreign investment.In this process,China's banking industry has continued to grow and develop,and its competitiveness has increased substantially.Since China joined the WTO in 2001,many commercial banks have successfully introduced overseas strategic investments.Overseas strategic investors are mainly financial institutions in developed countries or regions,and have the characteristics of rich experience in financial markets,strong capital strength,rich internal management experience,and advanced risk control technology.Many scholars have carried out relevant research and selected perspectives such as performance,governance level,and risk-bearing to explore the impact of overseas strategic investment in Chinese commercial banks.This article uses the perspective of banks' risk-taking ability to study the impact of overseas strategic investors on Chinese commercial banks.According to the relevant documents of the China Banking Regulatory Commission,the thesis defines overseas strategic investors and distinguishes them from speculators and financial investors.Then it reviewed the history of the introduction of overseas strategic investment by Chinese-funded commercial banks and discussed the status quo of risks faced by Chinese-funded commercial banks.Subsequently,the article focuses on the principal-agent theory,equity balance theory and institutional change theory,analyzes the theoretical basis of foreign investment,and analyzes the impact mechanism and adjustment effect.Later in this paper,the non-performing loan rate is used as a proxy variable for the risk-bearing capacity of commercial banks.That is,the lower the non-performing loan rate,the higher the risk-bearing capacity of commercial banks.The thesis selected data from 32 A-share listed commercial banks from 2010 to 2018,and uses the panel data regression model to make an empirical analysis.Investment can effectively reduce the bank's non-performing loan ratio,and the shareholding ratio of foreign shareholders has a negative correlation with the bank's non-performing loan ratio.In terms of regulatory effects,the size,growth and concentration of banks have no linkage effect with the shareholding ratio of foreign shareholders,while the proportion of credit loans has a linkage effect with the shareholding ratio of overseas shareholders.The higher the proportion of bank credit loans,the stronger negative correlation between the shareholder ratio and the NPL ratio of banks.According to the empirical results,the paper puts forward three policy recommendations: First,expand the introduction of joint-stock commercial banks,urban commercial banks,and rural commercial banks to overseas strategic investors,and provide greater policy support to commercial banks that have a higher proportion of credit loans or have more public business.Second,it is not recommended that large nation-owned commercial banks introduce foreign strategic investors.Third,it is recommended to identify high-quality overseas strategic investors in the process of attracting foreign capital,and to prevent the control of commercial banks.