A Study On The Common Governance Models In China's State-owned Commercial Banks

Corporate governance is developing towards common governance, which isshown by the progress in the understanding of corporate governance on modernenterprise theories and the up-to-date experiences in corporate governance both insideand outside China. Through the comparison and analysis of the governing model incommercial banks in major developed countries (mainly the Anglo-American modeland Deutsche-Japanese model), one may find that there are more problems with morecomplicated reasons in the governance structures of state-owned commercial banks inChina. Based on the analysis upon the governance in the state-owned commercialbanks, and the merit analysis of common governance and its impact on them, thisessay is trying to state the advantages of common governance as the applicationmodel in the governance reform in the state-owned banks. Focusing on themechanism of common governance, five aspects are probed on the commongovernance construction in these banks, namely: Reforming the stock structureaccording to the "quasi-preferred stock model";Emphasizing internal governanceframe mechanism such as the board of directors;Streamlining the new trust andagency mechanism;Enforcing the external governance structure such as the legalsystem;Sharing information effectively between internal and external governance.The essay suggests some ideas and key points on the common governance modelconstruction in China's state-owned commercial banks, and proposes that, the banks'reform and listing as means of ownership diversification should be utilized as thedriving force and main path towards the realization of common governance, whichshould be the target model in state-owned commercial banks' management, hoping tobe of some help to the reform of the banks' governance reform.