Influence of the Entrance of Foreign Banks on China's Banking Performance Assessment

The authors hold it worthwhile to study the way foreign banks,which have made their way into China since China's entry into the WTO,influence China's banking business and its future development.Based on the data collected from 14 commercial banks from 1998 to 2006,the paper analyses the potential impact of foreign banks on Chinese banks in such aspects as profit,operation and risk-resisting capacity and concludes that,while exerting considerable influence on Chinese banking business,the entrance of foreign banks does little to the profitability and risk-resisting capacity of Chinese banks.In other words,the market competition effect,the technical modeling effect and financial stabilization effect of foreign banks have not yet manifested themselves in China.