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The Choice Of The Practical Paths To Develop Private Banks In China

Posted on:2005-10-11Degree:DoctorType:Dissertation
Country:ChinaCandidate:N ZhouFull Text:PDF
GTID:1116360125958950Subject:History of Economic Thought
Abstract/Summary:PDF Full Text Request
The term "Private bank" has been a focus in the research of China's financial structure reform in recent years. Whereas there exists a heated controversy on what is a private bank, why should we set up a private bank and how to develop a private bank. The topic deserves our investigation and deep research. The paper will discuss these in detail.Chapter one centers on the explanation of some basic categories of private banks. Here the writer defines the private bank as a domestic stock-holding commercial bank held by private capital. A private bank shares three characters, namely the property right held by private owners, the operation run in accordance with the markets and the management executed independently. The private bank will go side by side along with the state-owned commercial banks in a relatively long time.Chapter two makes use of the three theories to demonstrate the necessity of the development of private banks in China from three aspects. Firstly, the paper cites the theory of equilibrium development between finance and economy, and demonstrates that the establishment of private bank can effectively adjust the inadequality between economy and finance. Secondly, the paper demonstrates that the development of private bank is a financial system innovation, which will lead to a switch of financial system from government monopoly to a government and market combination management. Thirdly, the paper demonstrates that the financial freedom and financial globalization requires market-oriented private bank.Chapter three is the main body of the paper. In this part, some suggestions are proposed concerning the establishment of private banks.Firstly, the paper analyzes the different patterns taken by countries district such as Taiwan Hungary, Poland and Russia in the development of private banks in their economic reform that provides an experience and example for us.Secondly, the paper expounds the restrictions on the development of private banks in China. Four related reforms must be carried out recently. (1) Ameliorating the socialcredit system to provide a sound credit circumstance for the development of private banks, (2) implementing market-oriented interest rate to provide a indispensible operation tool for the private bank. (3) Establishing a deposit insurance system to avoid the operational risk of private banks. (4) Strengthening supervision system to snsure a sound development of private banks.Thirdly, the paper puts forward the practical path arrangement for the development of private banks in China which includes four aspects: (1) the general path covers the arrangement of taking a gradual step and combining the compulsory change with inductive change, the reconstruction with construction, globalization with nationalization. (2) Transformation path covers the arrangement of taking the present share-holding commercial banks as the breakthrough and establishing the local private banks on the basis of urban and suburban commercial banks and co-operatives. (3) Market-oriented path covers the arrangement of establishing local small-sized private banks. (4) Share-holding rights path covers the arrangement of centralization of share rights. (5) District choice path covers the arrangement of well-developed cities and coastal districts.The paper takes the theories of Marxist economics as guidance, the regulatory economics and financial-penetration theories and some other related theories as research methods. The paper also studies the development path of private banks systematically, proposing some unique points of view and will be helpful for the development of private banks in China.
Keywords/Search Tags:private bank, development path, practical choice
PDF Full Text Request
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