The Study On The Corporate Governance Of The State-owned Commercial Banks In Our Country

Since 1990's,along with the finance crises in the South America and South East Asia, international bankruptcy and the annexation and reorganization of international banks industry, the corporate governance of banks has gotten much more attention from the public than before. It has been realized that the key point of modern bank system is the corporate governance, and it decides the competitiveness in market and the ability to resist the risk. Now we are devoting ourselves to set up good corporate governance in our State-owned commercial banks to strengthen their abilities to avoid the shock of the financial risk so we can be more competitive in the world market.In the context of the separation of the ownership and control, because of the information asymmetry and finite contract, it results in the principal-agent problem. Corporate governance can solve this problem by making the manager operate the company on the interest of the owners. The common arrangement is to set up checks and balances internally. The rights, interests and responsibilities of owners and shareholders are defined and protected. Also it uses the incentive mechanism. Meanwhile, it must have perfect external governance mechanisms, such as the "vote by foot" in equity market, the market for corporate control and the competition in product market to limit the opportunism of the managers.On the basis of the general corporate governance theory, because the commercial banks have their own specialties that it has high rate of liabilities and it is the concentration of risk, the corporate governance of the banks...