A Study On The Development Of Private Banks In China

With the market economy continues to improve and development, the private capital come into the banking sector are increasingly popular. Since 2013, the State Council for the first time propose that; "try to set up own risk private banks by private capital", the establishment and development of private banks getting into public view, the relevant policies are promulgated one by one, for the establishment and development of private banks.Because of its ownership, private banks breaking the monopoly of state-owned Chinese commercial banks, as a strong complement to the financial markets to achieve diversification of financial institutions. Private banks have many features, such as capital formation privatization, corporate governance legalization, market management, market positioning diversification and so on, the establishment of private banks can promote fair competition in the financial market, and promote the reform of state-owned financial enterprises. Private capital come into the banking sector, not only for the promotion of private capital, but also also have a positive effect to commercial banks, can improve the rate of capital use and configure resources.In this paper, based on the private banking-related theory, refer to the theory of property rights theory, corporate governance,etc. combined with the government’s requirements about develop private economy and encourage innovation and entrepreneurship, use methods such as literature research, contradiction analys, comparative analysis and so on, to analysis the development of private banks. This article include four chapters:In the first chapter, define the concept of private banks. The definition of the concept of private banks has been debated in the domestic economists, may be summed up as coming under three categories:property structure theory, assets structure theory, and corporate governance theory. In this paper, based on the property structure theory, from the perspective of capital ownership to define the concept of private banks, analysis the features, development present situation, and reasons for the rise of private banks.In The second chapter, analyzes the root problem in the development of private banks, discuss the status of private capital, This determines how far the private banks can development.When compete with traditional banks, private banks are in a weak position, high capital costs, operations and business scope is limited, more specific risks, etc., are the practical problems of development of private banks to be faced. The development of private banks, in essence, is a historical return of private capital, there are two possibilities,one is private capital turn into state-owned capital,another is the opposite.In the third chapter, analyzes the internal right system of private banks.It’s decided by the nature of private banks that ownership and possession right are unified, and then made clear that management right is to expand ownership and use of concrete.In the fourth chapter, analyzes the development path of private banks. As a new thing, private banks has a huge potential for development, in order to develop well,they should to avoid disadvantages,develop advantages,and fully rely on the Internet to take the difference operation road.This not only requires the private banks’ own efforts, but also needs more favorable national policy and a healthy and stable financial environment support.