Chinese State-owned Commercial Banks Mode Selection

Accompanying the development of the China's state-oriented market economy and the reform of financial system, China's state-owned commercial banks have obviously started the banking mixed operation process. Now, we are standing at a quite vital point, and should choose an optimal model to develop banking mixed operation. There are three models which could be chosen to develop banking mixed operation by China's state-owned commercial banks. The first model is the American financial holding company, the second model is the Germany universal bank, and the third model is the British bank holding company. The chosen model is highly related to the economic and financial background of the country which the model lies in, and different model has lots of distinctions in the field of efficiency, risk prevention capabilities and so on. The choice of the optimal model will be influenced by both the diversified financial requirements and development of the financial institution.China's state-owned commercial banks should development banking mixed operation confirmedly in the post-subprime crisis period considering the special economic and financial development stage as well as the state-owned character. At the same time, China's state-owned commercial banks should regard the financial holding company as the optimal model to develop mixed operation and connect the capital market and the money market as well as the bond market and the security market so as to fully make use of the advantages of economy of scale, financial synergy and financial deepening. The financial holding company model could also optimize the distribution efficiency of financial resources and support the development of China's market economy. In the process of transition from state-owned commercial bank to financial holding company, we should follow a dynamic path from the model of primary banking mixed operation to the model of bank holding company and then to the model of financial holding company. In the path, we could make use of the efficient M&A method through the capital market to reach the final goal of building state-owned financial holding company.Even though that China's state-owned commercial banks develop toward the financial holding company will strengthen the monopolization of state-owned financial capital and weaken the competition in financial market, it's generally adaptive to China's state-oriented market economic model as well as the economic and financial development stage. From the long term perspective, the monopolization of state-owned financial capital which generates with state-owned financial holding company will depart from the general direction of China's financial system reform. We should design an efficient system to prevent the financial system from"alienation". At the same time, the government should play the role of the controlling shareholder, the builder of financial environment and the provider of supervision system so as to keep the transition from state-owned commercial bank to state-owned financial holding company smooth and efficient.The first part emphasizes the meaning of the research project and highlights the necessity of choosing an optimal model to development banking mixed operation for China's state-owned commercial banks. At the same time, this part put forward three important questions which are the choice of the optimal path toward banking mixed operation, monopolization of state-owned financial capital and financial stability and the role of government in the process that China's state-owned commercial banks develop towards state-owned financial holding company.The second part analyzes the banking mixed operation of commercial bank with general theories which include the institutional economic theory, the economy of scale theory, the economy of scope theory and the market competition theory. This part provides theoretical support for the choice of the optimal model and path that China's state-owned commercial banks develop towards banking mixed operation.The third part analyzes the relationship between banking mixed operation and the subprime crisis. From the perspective of the subprime crisis's background, evolution path and forming reasons, this part gets a conclusion that is the banking mixed operation is unrelated with the subprime crisis, so we shouldn't attribute the subprime crisis to banking mixed operation. At the same time, we should learn from the subprime crisis in the fields of financial leverage ratios, financial innovation, and financial supervision system. The forth part analyzes the present status and progress of the mixed operation of China's state-owned commercial banks, and research the relationship between the change of the state-owned commercial bank system and the change of the economic and financial system. Next, this part analyzes the system equilibrium of the mixed operation for China's state-owned commercial banks, and highlights the practical significance for China's state-owned commercial banks developing towards banking mixed operation from the financial demand and supply perspective.The fifth part analyzes the three optional models for China's state-owned commercial banks to develop banking mixed operation. This part compares American financial holding company, Germany universal bank and British bank holding company from the perspective of the financial system, main character, background and management effect, and then get the regularity of general characteristics of different banking mixed operation model to support the optimal selection of China's state-owned commercial banks to develop banking mixed operation. The sixth part analyzes the optimal model of banking mixed operation for China's state-owned commercial banks. This part put forward the optimal goal for banking mixed operation and argues that state-owned financial holding company is the optimal model for China's state-owned commercial banks to develop banking mixed operation from the perspectives of financial system, supervision model, state-owned holding nature, and so on. Besides, this part argues that China's state-owned commercial banks should follow a dynamic path from the model of primary banking mixed operation to the model of bank holding company and then to the model of financial holding company.The seventh part analyzes the macroeconomic effects of banking mixed operation and the role of government. This part argues that it's very meaningful for supporting the economic development and helpful for keeping financial stability that China's state-owned commercial banks develops towards China's state-owned financial holding company in the background of China's state-oriented market economic and financial system. As the actual holder of China's state-owned commercial banks, the government should play the role of the controlling shareholder, the builder of financial environment and the provider of supervision system, and should design an efficient system to prevent the financial system from"alienation"that the monopolization process of state-owned financial capital couldn't be reserved.