An Analysis Of Stimulating And Restricting Mechanism Of Senior Executive In Commercial Banks

The subprime mortgage crisis in the United States has caused great losses to the global economy.The reason is that the problem of excessive incentive to commercial banks,especially to their executives.Executives are the core talents of commercial banks.Infact,they have the power and decision-making power of the resources.Allocation of responsibility,right and benefit directly affects the performance and risk of the bank performance.Different from the general enterprise,the bank plays an important role in the steady operation of a country's economy.Therefore,it is of great significance to encourage and restrict the banking institutions and their executives.There are certain administrative colors between the upper and lower levels of commercial banks in China.At the same time,the appointment and assessment of executives also have a typical principal-agent relationship,and it needs to build a scientific incentive and restraint mechanism.This paper studies the problems existing in "the incentive and restraint mechanism of commercial banks in China at all levels of banks and their executives.By reviewing the development process of China's commercial banks to implement the executive incentive policy,as well as the investigation of incentive and restriction mechanism for top executives of commercial banks in typical Western countries,taking bank of communications as a case,the paper constructs the framework of executive incentive and restraint mechanism.