State-owned Commercial Banks' Capital To Optimize The Configuration Of Exploration

Reform and opening-up over twenty years has witnessed the fast increase of gross capital of state-owned commercial banks, which have become a significant foundation for supporting national financial sector as well as economic development. However, in terms of current situation, the four biggest state-owned banks are troubled with low quality of capital operation, insufficient value-maintained and value-added ability, and higher ratio of bad assets and deficiency of capital adequacy ratio, which resulted from irrational allocation of capital resources. Therefore, adjustment and optimization of capital resources are an important aspect of state-owned banks' reform. Through referring to successful experiences of foreign and domestic commercial banks' reform, this article is to discuss the optimized allocation of state-owned commercial banks' capital in accordance with current national situation. The article is divided into five sections:Section one: analysis of status quo of capital allocation of the state-owned commercial banks. Firstly, connotation of capital allocation and capital structure of state-owned commercial banks are introduced, and the next stress is focused on the analysis of current capital status quo of state-owned commercial banks in terms of their regional distribution, quality of capital operation, and capital adequacy ratio. Then a conclusion is drawn as: to enhance capital payoff ability and capital adequacy ratio, capital allocation must be optimized.Section two: a profound analysis on the rootstock that blocks the optimization of state-owned commercial banks' capital allocation, that is, the unclearness of property right's ownership. Starting from the theory of property right, by introducing the essential feature and function of property right, and characteristics of modern property right system, relationship between property right and resource collocation, as well as by comparing the property right system of western commercial banks with current operation pattern of property right of domesticcommercial banks , the author points out that the realistic choice for re-composition of the state-owned commercial banks' property right is to transform to modern corporate system and put it to the stock market.Section three: based on the above mentioned analysis, and combined with cases of domestic and abroad commercial banks' capital re-composition, the author puts forward feasible schemes to put the state-owned commercial banks into the stock market. The feasible schemes include: internal reforming and re-composition first, and then transformation to modern corporate system to get them listed on the stock market; making pilot project first, and then generalizing it; share holding by juridical person first, and then by the public; get them listed on overseas stock market first, and then domestic; or from sectional to the whole.Section four: consistent with Section three, through analyzing the trend of global finance integration, financial liberalization, and financial service pluralism, and using the American banking supervision and management mode for reference, the author puts forward strategies of fully opened policy for financial sector according to our banking status quo. These strategies are to further optimize capital allocation by mergence and assets re-composition through capital market, and establishment of bank holding company of state-owned commercial banks.The final section: the author brings forward relevant suggestions on capital resource allocation of the state-owned commercial banks, and then predicts the future development.