This thesis is divided into four parts. In Part One, I discussed the development and expansion of multinational bank in China. Ever since 1981, the number of foreign banks in China has increased to 183. Along with the increase, he total asset and liability also grew steadily.
In Part Two, I stressed the macro effect to our economy from three aspects such as the income effect, the monetary effect and the international balance of payment effect. The come-in of foreign banks stipulate our economic development by bringing in large amount foreign investment and cover the capital and foreign shortage. Meanwhile, the credit and money exchange business of foreign banks affect both our monetary policy and international balance of payment directly or indirectly.
In Part Three, I discussed the micro effect of foreign banks mainly from two aspects: The first point is the financial market structure effect. The entrance of foreign banks introduces a new pattern of competition in the financial markets, and stimulates the competition among domestic financial institutions. And the second is the business management effect. Modern bank management concept and their experience brought by foreign bank promote the reform in the business management for domestic banks.
In Part Four, I discussed How to perfect opening in our banking sector. Following the above, I made comment on the existing policies for foreign banks, and gave some suggestion on foreign bank entrance and business supervision from the central bank viewpoint.
Key Words: Foreign Capital Bank Macro Effects Management System
