State-owned Commercial Banking System And Recycling

Four large state-owned commercial banks (simply named state-owned commercial banks),which are Chinese Industrial and Commercial Bank, Chinese Agricultural Bank, Bank of China and Chinese Construction Bank, have existed problems of two lows and one high(low capital adequacy, low efficiency of source allocation, and high nonperformance asset ratio),which will affect GDP growth of China entering monetary economic times and impede to realize our economic development target through financial deepening; at one time, national banking will face immense impulse coming from completely operating RMB business when foreign banks enter Chinese market after 2007. To improve core competitiveness and growth, our government adopted policies "surrendering part of right and profit", injecting capital, and peeling off nonperformance assets to deal with these problems since reform and opening to the outside world, but the results are imperfect. Short-term behavior occurred with surrendering part of right and profit; Capital adequacy declined continually after making up capital; Nonperformance assets began to amass after debt conversion for equity, a second strip seemed to be necessary. So we have to consider these malpractice from the source of system and prevent and control them through system remaking, not only "technical imitation".We first deeply discuss the system and characteristics of modern commercial system in the mature market economy in order to anatomy the malpractice source of state-owned commercial banks, we arrive at an important proposition which is that commercial banking growth finally converges to the modern corporation system, which is logistic topic throughout my dissertation. It is because modern commercial banking system embodies mainly the modern corporation system that studying state-owned system remaking needs modern corporation theory.From the third chapter to the fifth chapter, we discuss the current system of state-owned commercial banks from property right, trust-agency and organization system respectively. The void and single principle part of property right is the source of these malpractice, the promotion of the property right to the efficiency has been in the extremely incomplete state and led to the distortion of trust-agency: bankers absence and inefficiency of long-term stimulant; structure of organization and the administrative system are highly coupling. To make state-owned commercial banks truly come into being modern financial enterprises, we must push property reform, through privately-running gradually, these banks can be remade to be modernshare-limited companies whose main part is multi-property. Only such, the stockholders can become true stockholders, truly undertake investment risk, regard bank earning and future growth, be motive to choose competent managers and adopt measures to incite and restrict them so that they can do better. At the same time, we need to establish suited corporation structure so that the right and duty among stockholders, directorate and managers are clear, and these three parts can take charge and operate respectively; develop the controlling effect of outsiders. We need construct marketable hierarchy of corporation based on the core of clients, and completely elevate organization role in the optimizing source allocation efficiency in the system. We follow logistic and historical analysis with a view of study method of economics and comparative system.Remaking system of state-owned commercial banks is also restricted with many outside conditions. In the sixth chapter we mainly discuss relationships between state-owned commercial banks and government, financial market structure and state-owned enterprises. Final establishment of modern commercial banking system need cooperating with their reform. Improvement of these outside conditions appears more important and crucial to Chinese transforming economy.In the seventh and eighth chapter, we turn our view to the practice of international related countries and experience of Taiwan. Banking systems...