作者：齐绍洲

Abstract: Based on the short term equilibrium of imperfect competition, this paper analyzes the competition effect of the asymmetric information, entry mode of M&A and Greenfield Investment of foreign bank as well as strategic information display of the incumbent bank. The finding of this paper is that the entry of foreign bank could enhance the competition and force the incumbent bank to decrease cost and improve technology. Therefore, borrowers could get more access to finance and pay lower interest. As a result, the allocation of financial resources could be higher efficiency through competition.