State-owned commercial banks' internationalization operation strategy

Author: Zhu Zhenggang
Publisher:
Publish Date: 2004-06-01
Features: This work is based on the revision of Zhu Zhenggang's doctoral dissertation. The dissertation received praise from all review experts and the defense committee, who considered it an outstanding paper with innovative methods and a combination of theory and practice. The author has long worked in state-owned commercial banks, gaining firsthand experience and understanding of China's financial operations, particularly the business activities of commercial banks, offering a unique perspective. Throughout the book, it can be seen that the work primarily has the following characteristics:
First, emphasis on structural analysis. The author takes normative analysis as the main thread and structural analysis as the focus, proposing a series of original insights by analyzing the relationships between target variables and economic and financial variables in the international operations of banks.
Second, focus on empirical analysis. The author not only employs rigorous and standardized theoretical analysis but also fully draws on advanced research methods from abroad. Using a large amount of material, the author empirically analyzes the characteristics of state-owned commercial banks in China during the stages of starting, developing, and reforming their international operations, providing strong evidence and persuasion.
Third, strengthening the analysis of key issues. International operations of commercial banks is a broad issue with many aspects to discuss, but the author does not cover everything comprehensively. Instead, he focuses on analyzing several major issues in the theory and practice of international operations of state-owned commercial banks in China, such as the diversification of business activities, business process reengineering, and the "two-way alignment" model of international operations, which are close to China's reality.
Fourth, emphasis on the combination of theory and practice. In many chapters of the analysis, the author combines theory with practice, proposing targeted suggestions based on China's specific national conditions and realities, making it vivid and substantial. He introduces theoretical achievements both domestically and internationally on this issue and puts forward views that align with China's actual circumstances. For example, starting from the theoretical basis of international operations of banks, he clarifies the relative advantages of state-owned commercial banks in China in conducting international operations and proposes valuable insights such as the "tapered advancement" strategy for regional expansion, the strategy of integrated foreign and domestic currency operations, and the gradual product usage strategy. Additionally, he proposes optimizing the governance structure as the foundation for international operations of state-owned commercial banks, aligning with the current context.
The book reviews the history and internal determinants of the international development of Western commercial banks and preliminarily establishes a theoretical analysis framework for the international operations of commercial banks. Based on comparative studies of the theory and practice of international operations of banks in Europe, the United States, Japan, and other regions or countries, it proposes a model design for the international operations of commercial banks. Specifically, it designs a "two-way alignment" international alignment model for China's commercial banks, outlining strategies for international operations in terms of regional expansion, business operations, product usage, and domestic and foreign interactions. It also highlights the importance of business process reengineering and diversified business development.
The fields discussed in this book have significant practical implications for the strategic choices of state-owned commercial banks in China regarding their international operations after joining the World Trade Organization.