Research on the Influence of Foreign Capital Introduction on Financial Risk in Banking Industry

Regression Analysis Based on Panel Data of 16 Banks

DOI

10.2991/aebmr.k.220306.001How to use a DOI?

Keywords

Banking industry; Introduction of foreign capital; Financial risk; Financial security

Abstract

Building a new open economic system at a higher level requires opening up to the outside world in a wider range, wider fields and deeper levels. The opening up of the financial industry is one of the key links. CBRC’s cancellation of foreign ownership limit can effectively coordinate with the implementation of the financial industry’s opening-up strategy, and has a very important incentive effect on the development of China’s banking industry. But at the same time, the financial risks it may bring can’t be ignored. By selecting panel data of 16 banks from 2016 to 2021, a regression model is established to analyze the impact of foreign capital introduction on financial risks of banking institutions. It is found that the relationship between foreign capital introduction and risk of commercial banks presents nonlinear curve characteristics and there is a critical point. Based on this, the relevant policy suggestions are as follows. Firstly, when the restriction of introducing foreign capital is relaxed, the proportion of foreign ownership should be set as the maximum limit. Secondly, the host country should firmly grasp the actual control of the financial industry. Thirdly, the quality of foreign investment should be strictly controlled. Fourthly, the proportion of foreign investment should be adjusted accordingly.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Han Qiao
AU  - Wanying Zhang
AU  - Yanan Liu
PY  - 2022
DA  - 2022/03/17
TI  - Research on the Influence of Foreign Capital Introduction on Financial Risk in Banking Industry
BT  - Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)
PB  - Atlantis Press
SP  - 1
EP  - 9
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220306.001
DO  - 10.2991/aebmr.k.220306.001
ID  - Qiao2022
ER  -