Corporate Governance And The Reform Of State-owned Commercial Banks

It is a great milestone for Chinese reform and opening that China was admitted to WTO and became a member of WTO in November 2001, Economic globalization leads to financial globalization, which offers chance and challenge for development of state commercial banks. For state commercial banks, the challenge not only comes from other Chinese joint-stock commercial banks, but also from powerful foreign capital banks. Both chance and challenge exist in the same time. In order that state commercial banks are situated at strategic peak in the future development, reform in corporate governance will be the key and the most important among various reform issues. By means of introducing historical evolution of cotporation theory, this thesis takes theory of entrust & agency and theory of super-proprietary as theoretical foundations for corporate governance. This thesis expounds the corporate governance mechanism in British and American law system, Germany and our country, and also expounds the updated information of development in corporate governance, the influence of SOX Act upon it. This thesis studies in detail the applications of corporate governance in the progress of state commercial banks' reform of our country by way of introducing the actuality and problem involved in corporate governance in Chinese state commercial banks. Finally this thesis offers the designed scheme for progress reorganization, by taking advanced experiences of Citibank and Bank of China (Hong Kong Ltd.) for reference. The architecture of the whole thesis is arranged as following,Chapter one, firstly reviews the historical evolution of corporation theory, and takes theory of entrust & agency and theory of super-proprietary as theoretical foundations for the thesis. Economic development leads to division between ownership and management eventually, and results in demands on corporate governance. The proprietary connotation of modem corporation system encompasses three divisions, which are division between ownership of stockholder and ownership of juridical person, division between ownership of stockholder and domination, division between ownership of corporation and management. This chapter puts emphasis on study orientation of corporate governance by introducing theoretical foundation, basic connotation of corporate governance.Chapter two, introduces in detail the balance mechanism of corporate governance in countries involved in British and American law system and Germany, including controlmechanism in stockholders and board of directors, internal control mechanism in board of directors, balance mechanism in operation level and in board of supervisors. The chapter also introduces the updated development in corporate governance, SOX Act of United States and its influence upon our country.Chapter three, studies background of historical evolution of corporate governance in Chinese state commercial banks. The paper specially introduces the contents of corporate governance in Bank of China before and after the Chinese Liberation, and also introduces the characteristics and changes in the progress of reform and development in Chinese state commercial banks since 1949, making known the history of corporate governance in Chinese state commercial banks.Chapter four, mainly studies problems of corporate governance existing in Chinese state commercial banks. This chapter foreshadows the solutions for next chapter by studying in detail the issues of proprietary, board of directors, manager level, board of supervisors and business management, etc.Chapter five, applications of corporate governance in state commercial banks includes proprietary diversity and reform in board of directors, manager level and board of supervisors. This chapter provides reform method for issues presented in the previous chapter.Chapter six, introduces the characteristics of progress reorganization in the world and advanced experiences of business management in Citibank. The success of Bank of China (HK Ltd.) IPO and its better mechanism provides good expe...