China's State-owned Commercial Bank Restructuring

After more than 20 years of reform and development, a commercial banking organization system in our country, composed mainly of state-owned commercial banks, but also including banks under other ownership, was established and a competitive form, oriented to the market system, has appeared. However, our state-owned commercial banks, originating from the planned economy system, are now under the joint effects of systematic problems and the disadvantage of an inferior operational system, it is very difficult to manage the assets efficiently and to make reasonable use of them according to the requirements and principles of the market economy. The historical disadvantages and the current flaws of the state-owned banks have become the greatest obstacles to the reforms and development towards a market economy. As the field of finance will be opened wider and wider to the outside world, the main purpose of this essay is to try to find a referred and practical way to promote the reform of state-owned commercial banks.At present, there has been a distinct tendency towardr globalization in the world's economy and a rapid development in the world's financial systems. The trend of bank restructures and mergers has been occurred all over the countries which can accelerate the reasonable flow of capital to meet the scientific and epoch development. Bank mergers is a viable way to reduce or remove risk and to promote operational benefits by forcing the rational flow of capital and pushing forward the diversified ownership of banks.By seizing the opportunities of entering the WTO and borrowing from the successful experience of developed countries' banking restructures, the state-owned commercial banks in our country should take the time to make advancements by strengthening the reforms of the property rights system and optimize the reorganization of bank assets under the guidance of the market economy system, improving the comprehensive competitive ability, assisting in the improvement in our country's economy.Presenting substantial evidence and analyzing on the basis of exploring the mergers experiences and lessons of international banks and domestic banks, this article is presenting the theory and the practical program of the state-owned bank restructures in our country. This article states that bank restructures is the basic solution to reform of state-owned commercial banks and to the efficient reorganization of bank assets.