The Study On Preventing Of Insider-control Of State-Owned Commercial Banks

This essay is studying how to avoid"insider control"in Chinese commercial banks. Insider control is very common in Chinese State–Owned commercial banks. With the development of Chinese economy, marketable and economical relationship of principal and agency appeared progressively. And ownership separates from operateship to some degree, besides the unbalance of information, which produce"insider control"phenomenon. Actually insiders control the corporation and encroach the outsiders'right, which breach the principal'benefit and get personal gain unlawfully and consume national fortune, while ignore the long-term development of banks.The main objects of this research include: firstly, analyzing the prime theory and concepts of Insiders control and the reasons of state-owned commercial bank's insider-control, summarize its exterior forms and damages. Secondly, investigating the way of avoiding"insider control"in commercial banks of western countries and providing some experience to China through comparing them. Thirdly, retrospecting the history of avoiding insider control of Chinese state-owned commercial banks, and through reforming on state-owned commercial banks at present, banks have solved some problems and made some achievements, but it still has a long way to go to a real commercial bank. Fourthly, providing some suggestions and measures on the base of experience and problems in reforms which result from comparison between China and western ones.Considering the present reforms in China, the essay expatiates some problems and provides some suggestions through comparison with western countries: 1. Making the state-owned commercial banks structure of property right perfect and reforming furtherly according to the present situation.2. Consolidating management mechanism of corporation, seeking for a managing-pattern fitting to the situation of China and impairing"insider control".3. Regenerating present promoting mechanism and paying attention to long-term ones.4. Reinforcing outside restriction.