Research On The Incentive And Constraint Mechanism And The Performance Of Commercial Banks In China

At the present time, our country is opening the banking market gradually. Allowing foreign banks to enter our banking market is a tough test to our banking industry. Setting up and improving the incentive and constraint mechanism has a great value in theoretical analysis and practical corporation.The core of the paper is the correlation of incentive and constraint mechanism and performance of commercial banks. Firstly, we introduce the scientific content of them and define the true meaning of the object in the paper. Secondly, in theory expand preliminary correlation exists between the incentive and constraint mechanism and the performance. The purpose of setting up the incentive and constraint mechanism is improving the performance; the incentive and constraint mechanism is good or bad can influence the performance. Thirdly, introducing the status of the incentive and constraint mechanism and the performance and pointing out problems of the incentive and constraint mechanism. In addition, though the empirical analysis, because of the limitations of data collection, it is just found that there is a positive correlation between the pay mechanism and the performance of commercial banks. The pay mechanism is one of the factors affecting the performance. The performance can be well improving when all the factors coordinate with each other. At last, the paper point out that we must improve the incentive mechanism in three areas: material, spirit, property rights incentive. In constraint mechanism, we must improve the inside mechanism and make full use of the outside market mechanism.