The motivation and impact on the foreign banks entrance in China

Abstract: Since the 1970s, the world economy integration and financial globalization has become an irreversible trend. Each country is facing to opening up or further opening their banking system. The international experience shows that foreign banks’ entering has a deep impact on the host country banking sector. With the deepening of China's reform and opening up and the accession to WTO, foreign banks have adjusted and accelerated their development in China. With the continuous expansion and development, foreign banks are playing a dominated position in doing business in Chinese financial market. Therefore, the studies of the efficiency influence by foreign banks entering Chinese financial market become an important research topic.