Research on Strategic selection of Chinese Commercial Banks under the Entry of Foreign Banks

Abstract

The foreign banks have the fully market access and the limitations on arena and customer will be totally eliminated since December 11th, 2006. The foreign banks have intense competition on arena, customer, human resources and other fields with Chinese commercial banks. Therefore, it is a principle question of how to select strategies. This thesis analyses the current development situation of foreign banks. The study also research the impact of the foreign banks' entry on Chinese commercial banks and the corresponding responses on strategies carry out by Chinese banks. This report has been divided into five sections. The first section is to indicate the objective of the research and give an introduction of the background of Chinese market and the Chinese commercial banks by using the SWOT analysis. The second section is literature. It includes the motivation of foreign banks' entry, the effect on Chinese banks, the forms of their entry as well as some strategies of banks. The third section describes the research methodology. It includes the research design both in primary and secondary, and it also point out the weaknesses of the research. Finding and analysis are written in the forth section. Here presents the findings that are collected during the research. And also link theories to practice. The last section is the conclusion and recommendations about the strategies carried out by the Chinese banks (including analysis and evaluation)