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Chinese to English: 外资银行在中国的发展趋势 General field: Bus/Financial Detailed field: Finance (general)
Source text - Chinese 2001年加入WTO以后，外资银行开始了真正的发展。自2003年起，外资机构在我国的资产规模、所有者权益、盈利能力迅速提高。2008年，外资银行总资产达4159.7亿元,2003-2008年五年内增长了223.3%，占中国银行业资产总额的2.16%。外资银行机构资产总额占比呈逐年上升趋势。自从我国入WTO 以来，银行业的开放进一步加快，外资银行经营外汇业务没有地域和客户限制，经营人民币业务的地域也在扩大。目前，我国外资银行主要有，美资银行例如花旗和摩根大通，欧洲的包括德意志，法国兴业，法国巴黎银行，法国汇理，荷兰，渣打银行。
Translation - English After China joined WTO in 2001, the foreign banks begun their undoubted development in China. Since the beginning of 2003, the scale of the foreign institution s' assets, equity and profitability have been increased rapidly. In 2008, the foreign-invested banks' total assets amounted to $415.97 billion , in 2003 - 2008 within 5 years it grew 223.3 % and was 2.16 % of the total assets of the banking in China. The proportion of the total amount of foreign institutions’ assets was in a progressively increased trend within these years. Since our country joined into WTO, the opening of the banking industry have been accelerated further . There are no any restrictions of region and customer for the foreign -invested bank to operate their exchange business. The areas of their operation of RMB business are also expanding. At present, China's foreign-invested banks are mainly US Banks, such as Citibank and JP Morgan, European banks, including Deutsche Bank , Paris, France, the Netherlands, France, France societe Generale, BNP Paribas, France Agricole, Bank of Netherlands and Standard Chartered Bank.
Since 2007 four major foreign-invested banks, such as Citibank led to set up independent corporate institutions, within two years there were 24 independent corporate banks had been established in China. Along with continuous development of the economy and finance, some financial institutions of emerging market countries and small developed countries will continuously establish or increase their branches in China, while the large-scale foreign investment institutions and banks will set up independent corporate banks in China. The more important is that Taiwan Bank entered into Mainland China. Some foreign-invested banks have completed the overall arrangement of their branches within Chinese territory and have begun to adopt localization strategies. For example: the number of branches of East Asia, HSBC, Hang Seng, and other foreign bank in China has reached to 15; it is more than the number of branches of China city commercial banks. Their institution arrangement in the eastern coastal region has completed basically and is expanding toward the middle west areas. Currently, most of the Hong Kong, Singapore and US invested banks have adopted the localization development strategies. It is anticipated that there will be more European and South Korea invested banks to take the localization development strategies in the future.
The business emphasis of the foreign invested banks will be focused on the intermediate business. The strong points of the foreign invested banks are trade financing and personal financing business. Meanwhile, since their business outlets are not enough, the foreign invested banks have to mainly depend on the measures of business innovations and high-tech services etc to compete in the retail markets. However, there will be more and more foreign invested banks which will establish branches and independent corporate institutions in China.
Since the reform and opening up, China has become the one of the few high-growth markets in the world. Its increase rate of the finance industry is faster than that of its macro economy. From the point of whole country's view, through increasing the capital into their branches, the foreign invested banks could not get good achievement, no matter on the capital volume and market shares of deposit and loan or on the profitability. Another way to enter into the Chinese market is by investing in the Chinese banks or making alliance with the Chinese banks. In addition to participating in the Chinese banks directly, establishing an alliance with Chinese bank is also a kind of method. The most famous case is that Citi Group and Shanghai Pudong development Bank established partner relationship in the credit card business; at the same time, Citibank also gave support to Pudong Development Bank in personal financing, risk management, financial management. Establishing strategic alliance can solve the problems of insufficient business outlets in certain extend for the foreign invested banks.
Impact of foreign banks to the Chinese market.
Foreign banks have a lot of advantages. First, the foreign-invested banks generally have a long history, have perfect management systems and have a sound service system which is focused clearly on the medium and small sized customers. They know very well the financing regulations of the host countries and their business activities are not interrupted by the government of their own countries. Second, the foreign-invested banks have large scale, high-quality assets and advanced technology. Finally, the foreign-invested banks' enterprise culture is better. They focus on the training of personnel. However, the foreign-invested banks' business network is relatively small, localization is inadequate.
The entrance of the foreign-invested banks , solves directly the sufficiency rate problem of the commercial banks and reduces the burden of the state owned banks. First , the entrance of the foreign capital to China's financial markets can help to improve the competitiveness of Chinese finance enterprises. And, the foreign-invested banks have apparent advantages in providing financial products and services. It forces Chinese banks to improve their business management, upgrade their products and services, finally, to improve the efficiency and service levels of the financial industry of China. The cooperation of Chinese banks with foreign banks will be conducive for the internationalization process of Chinese financial enterprises.
Downsides, foreign banks increased market competition in the banking industry. With the financial reform and liberalization, depending on their complete commercial banking service functions, the foreign-funded banks will start fierce competition with Chinese-funded banks in absorbing high quality customers. The service market share of the foreign banks will expand further and the shares of the Chinese funded banks will diminish.
Bachelor's degree - University of Montreal
Years of experience: 13. Registered at ProZ.com: Dec 2011.