A Study on the Motivators of Transnational Operations of Chinese Commercial Banks

When entering the 21st century, the foreign assets and the number of oversea agencies of Chinese commercial banks increasing constantly, and its level of internationalization become higher. This paper relies on Dunning´s eclectic theory (OLI Model) as a framework to explain the motivators of transnational operation of Chinese commercial banks. Empirical results show that: profitability and international experience of commercial banks, the direct investment abroad, the level of industrialization and income and banking regulatory environment of host country (region) in all have a significant impact on cross-border operations of commercial banks in China. It is further reveals that in order to expand its cross-border operation activities, Chinese commercial banks should to better use its ownership, location and internalization advantages.