Theory Of Industry Self-government Transformation, And The China Banking Association

Industrial Autonomy refers to all the members from the same industry reach a consented contract to set up an organization in order to safeguard their general interests and achieve common goals of the whole industry. The organization, on one hand, governs the whole industry on the basis of principles and procedures of their contract; on the other hand, handles the relationship with outside world or manages to resist the aggravation of the government.Industrial Autonomy originated from the Third Domain in which both the government and the market failed. In such a domain, the government as well as the market, failed to supply the products that mingled with private and public features. And even if the government could eventually supply those products, the cost would be too high to be worthwhile. Under this circumstance, the Third Organization (such as an industrial association) emerged. So the subject of an industrial association features in its non-governmental, non-profitable and self-ordering characteristics.However, the Bank Association of China is still regarded as a quasi-government whose main responsibility is to carry out the will of government. It isn't, firstly, in accordance with its values as a social organization. Secondly, it doesn't agree with its non-governmental and non-enterprise features. Finally, the self-governance in a industry is misunderstood as the supervision by the government. Hence, the paper proposes that it is a must for the Bank Association of China to be changed into a non-governmental organization from a quasi-government one.