Study On The Administration Of The State-owned Commercial Banks In China

Financial sector is the core of modern economy.After twenty years' development and reformation,China's financial sector has gradually formed a relatively complete financial system based on commercial banks,covering securities,trusts,funds,and insurances.The constant growing of financial sector has played important roles in optimizing the allocation of resources,supporting economic reform,promoting steady and rapid economic development,and maintaining social stability.After China's accession to the WTO,the overall opening-up of the financial industry and the powerful foreign competitors necessitate further acceleration of China's financial sector reformation.This makes the domestic financial industry re-consider its own development model and governance structural problem.During this process,the reformation of commercial banks is the essence of the reformation of financial sector,and the four major state-owned banks(BOC,ICBC,CCB,and ABC) are the keystones to the reformation. According to the development and practice of shareholding system reform of our state-owned commercial banks,joint-stock system is the basic form of modern enterprise system,for it can not only help develop our state-owned commercial banks,but it is also a commonly adopted organization form of the commercial banks over the world.The reform objective of our state-owned commercial banks is the transformation into modern financial enterprises and this reform will directly influence our national economy.This paper sets the shareholding-reform process of state-owned commercial banks and their successful listing as the starting point,and tries to summarize the special nature of the operation of commercial banks and the special nature of the governance of banks brought by it.On the basis of this,this paper sets China's state-owned commercial banks as its subject of study,studies the status of their governance and the existence of the problems,combines the status quo of China's economic development and global experience of governance structure of commercial banks,and discusses the problems existing in the corporate governance of China's state-owned commercial banks and the governance path and measures of China's commercial banks.Based on the data given by our state-owned commercial banks,it is concluded that there exists a great distance between our state-owned commercial banks and international joint-stock commercial banks.Comparatively speaking,there are mainly four problems in management:firstly, unclear ownership and unreasonable structure of share holders;secondly,the lack of internal check-and-balance system which results in insider-control problems;thirdly,stiff external environment of corporation management and inability of risk supervision;lastly, imperfect incentive and restriction mechanisms.The last part of this paper,based on analyzing the successful cases of National City Bank of New York and Deutsche Bank, aims to put forward policy suggestions on future management for our commercial banks from the four mentioned-above aspects.The study of our state-owned commercial bank governance is of far-reaching significance.On one hand,it can help accelerate the reform innovation,enhance the international competitiveness,the ability to handle risks and pre-warning ability.On the other hand,it has great influence on the gradual establishment of corporate governance of socialist market economy,which is a primary problem faced by our state-owned banks especially under the outbreak of global financial crisis.