The Corporate Governance Research And Strategies For Luohe Bank Co. Ltd

The predecessor of the Bank of Luohe is Luohe City Credit Union. In September2002, Luohe City Credit Union has opened under the auspices of the Luohe city government, restructuring funded by the local finance, business entity and natural person. In June2009, Henan Banking Bureau approved the establishment of the Luohe City Commercial Bank. In May2012, approved by the China Banking Regulatory Commission (CBRC), Luohe City Commercial Bank changed its name to Bank of Luohe. With the growing of the Bank of Luohe, many problems also appeared, especially in aspect of corporate governance. For example, the shareholders failed to exercise its rights of shareholders effectively; the Board operation mechanism is incomplete; the Board of Supervisors a mere formality; equity structure is irrational. Therefore, establish a sound corporate governance structure is essential for the Bank of Luohe.The paper study corporate governance and optimization strategies of the bank of Luohe systematically under controlling large number of documents, on the basis of corporate governance, use the experience of domestic and foreign commercial banks. First of all, the paper analyze the current situation and problems of the the Bank of Luohe. Secondly, the paper offer the program of shareholding structure optimization through the comparative study of domestic and foreign commercial banks in corporate governance, design the Shareholding ratio of the local government, institutional investors, management and staff of the stake. Further, the paper offer the optimization program of the Luohe Bank board governance by hiring and motivating the board settings, independent director system and operators. Finally, the paper put forward corporate governance optimization implementation strategy of the Bank of Luohe based on the optimization program.In this paper, features and innovations mainly in:(1) through analysis and comparison method, the paper put forward the shareholding structure optimization program of the Bank of Luohe which including the local authorities, institutional investors, management and employee-owned;(2) design optimization system of board governance of the Bank of Luohe which including the board of directors set, the independent director system and the engagement and motivation;(3) the paper provide optimized implementation strategy of the Bank of Luohe based on corporate governance. This study not only provides a practical report and reference implementation strategy for the Bank of Luohe, but also provides a basis for analysis and implementation approach for other city commercial banks to improve corporate governance strategy.