Institutions,Institutions Change And China Financial Institutions Change Studyjing

Financial system is the heart of the whole economic system. But, huge bad assets in bank system, problems in raising funds of small and medium-sized enterprises, prevailing speculation in stock market, nearly paralyzing rural finance, highly pressures from joining in WTO and……... Every problem seems very intractable and has potential relationship with financial institution reformation through different channels. Under such the background, this paper considers institution as an important research variable of China's financial system reformation, attempts to use institutional analytical method to analyse the past twenty-years'financial institution transition of China, and offers relevant references for China's current innovation in financial institutions.Nowadays, there are two research models about institutions analysis, institutional theory of Marxism and Western institution school. In order to better study institution with China's special reality, this paper firstly compares with two models for institution research, then proposes and explains the definition of institution through combining with China's economic speciality in transition period and culture characteristic in Section I. In Section II, the paper simply introduces the fundamental concepts of institution transition at first, then analyses and contrast with institutional transition theory of Marxism and Western institution school, and at last designs the general analysis framework of institution transition. In Section III, on the basis of theoretical analysis above, and also according to more than twenty-year'practices of China's financial institution reformation, the paper carries out the further research on China's financial institution transition. After the research, the paper shows that there is a contest for financial resources between the state sector and private sector in the background of China financial institution reform. During this period, the state is in an active position all the time. But, due to the duality of national identity, the institutions arrangements offered by the state in the process of financial institutions reformation are actually the equilibrium of game between economic person and societal person. This equilibrium is just only the temporary interest equilibrium of technical adjustment, and because most property rights of financial institutions have been hold by the state all along, the institutional transition is not formed. This temporary equilibrium promotes the further economic development and increases the relative price of financial resources. When the price increases to the point where the new institutional arrangement become benefit, the quondam equilibrium will be broken, and the state will offer a new institutional arrangement again to achieve a new equilibrium. Transition of China'financial institution is a process that starts from the equilibrium to the increase of financial resources'relative price, then to the broken of quondam equilibrium, and finally to the new equilibrium. Although most of state-owned financial institutions are inefficient in this process, this institutions...