The Negative Effects Of State-owned Commercial Banks And Preventions

Joining in WTO has brought great developing chance for China economy. But, at the same time, the banking of China are faced with great challenge, which they have never experienced before.It's especially hard for state-owned commercial banks, which will have to compete with both foreign "intruders" and fast-growing share-holding banks in China.Nevertheless, with their inborn defects (such as inadequacy of bank capital;rising ratio of non-performance loan;unreasonableness of the structure of property right and corporate governance;and so on), the four big state-owned commercial banks are merely "weak giants". Under such circumstance, the state-owned commercial banks will have to undergo thorough reform of share-holding system so that modern banking system can be established and coming into the market, in which the property right and liability is clear;enterprises run by their own;and management is scientific.On the foundation of relative research, at first ,this paper talk aubout necessity of state-owned commercial banks' coming into the market :state-owned commercial banks' coming into the market is need of promoting prefect capital complement system;of realizating scale-economy;of constructing modern banking system.then this paper summuize state-owned commercial banks' coming into the market having negative effect: negative effect on conduct of money policy;lead to owned-assets loss;strengthing financial instition dependment of government;inducingrisk of speculation and guarantee of depositor benefit;bring about share-holding separate management;lead to system risk of finance market.finally,we can settle these negative effect by some measure:strengthen money-market hard reform;improve evaluate assets and seek responsibility system;consummate operation mechanism of state-owned commercial bank;strengthen management introduced ofstrategical investor;accelerate system reform of property rights and circulation of state-owned share by coming into the market;improve state-owned commercial bank surpervisical system.state-owned commercial banks' coming into the market is the history trend. Therefore the our state-owned commercial banks should accelerate their steps of listing on the base of thorough reform of share-holding system.