An Empirical Study on the Impacts of the Chinese Banking Industry by Foreign Banks’ Entry


  •  JAE IK SEO    
  •  Guan Shi Chao    
  •  Sang-Bum Park    

Abstract

Foreign banks entering into the Chinese banking industry have significant influence in its profitability sources including non-interest income while foreign banks bring competitions to the domestic banking sector resulting in declined profitability of the Chinese banking industry. In addition, foreign banks’ entry makes a promoting efficiency in China's banking sector. Overall foreign banks’ assets become an integral part of China's financial institutions, and they may have more significant impacts on the non-traditional businesses and operational efficiency of Chinese banking which helps the formation of healthy competition.



This work is licensed under a Creative Commons Attribution 4.0 License.