Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)

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

Regression Analysis Based on Panel Data of 16 Banks

Authors
Han Qiao1, Wanying Zhang1, Yanan Liu1, *
1School of Economics and Management, Inner Mongolia Normal University, Hohhot, Inner Mongolia 011517, China
*Corresponding author. Email: liuyann016@163.com
Corresponding Author
Yanan Liu
Available Online 17 March 2022.
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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Volume Title
Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
17 March 2022
ISBN
10.2991/aebmr.k.220306.001
ISSN
2352-5428
DOI
10.2991/aebmr.k.220306.001How to use a DOI?
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.

Cite this article

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  -