The Research On Financial Governance Of Commercial Bank Stakeholders

With the development of new economy trending towards knowledge, information and society, the approach for commercial banks as nation's economic life line to acquire healthy sustainable development and high level industrial competitiveness has widely grabbed many countries'attention. Since bank is a unique high risk enterprise that is dealing with currencies and a credit organization that is going for profit, bank has many essential differences as common corporations, such as capital structure, operating objective, industrial supervision and product structure. Bank's operating profitability has a direct impact on the stability and development of the entire economy. Whereas commercial bank's importance to national economy, unique industrial characteristic and enormous external impact of banking crisis on national economy, the significance of commercial bank financial governance study is indisputable.From the broke out of US sub-prime crisis across-the-board to Societe Generale fraud, global banking industry is undertaking an unprecedented strike and revolution. The key to establish oneself in an unassailable and impregnable position in this financial crisis or even stand out from intensive industrial competition replies on the choice of system, meanwhile bank's financial governance mechanism is the kernel of the entire system. The establishment and enhancement of an effective commercial bank financial governance mechanism is propitious to bank's competitiveness, security operation as well as boosting investors'investment confidence.This article investigates the financial governance of commercial bank that possesses financial intermediary's unique characteristic from stakeholders'perspective. The study starts with the arrangement of financial rights and the conceptual substance of financial governance oriented with stakeholders. It ties commercial bank stakeholders closely with financial governance through the clarification of commercial bank stakeholders'boundary, analysis of financial right conceptual substance as well as the study of commercial bank financial governance characteristic. This article brings forward the establishment of a commercial bank stakeholder financial governance system that is composed of stakeholder financial governance structure and financial governance structure. It establishes a comprehensive commercial bank stakeholder financial governance mechanism that includes financial decision-making mechanism, incentive mechanism, supervision mechanism and risk management mechanism, by comparing and analyzing the pros and cons of three different financial governance structures: operator driven, relationship driven and owner driven. Stakeholder financial governance study is going to enrich the fundamental content of financial governance theory and improve financial governance system, while theory development will help to govern the financial conducts of stakeholders such as shareholders, creditors, customers, operators, employees and supervision authority more efficiently, by the same time further strengthen the financial status and function of each stakeholder. Meantime, this article combines stakeholder financial governance theory with actual practices. Based on the analysis of commercial bank stakeholder financial governance mechanism, it evaluates the actual practices of commercial bank stakeholder financial governance by using China Merchants Bank as an example, and strives to be referential to CMB and other commercial banks.For the purpose of minimizing the negative impact of financial crisis and protect the stability of financial market, commercial banks ought to proactively take appropriate measures to strengthen their risk resistant capacities in order to avoid potential operational crisis. To hit this target, improve bank stakeholder financial governance organization and ameliorate bank stakeholder financial governance mechanism is particularly critical.