Transformation Of Private Capital Into The Banking Sector Institutional Change

â…  The reform of finance system in developing countries has startedfrom the middle of 1970s, directed by Ronald I. McKinnon and Edward S.Shaw's financial deepening theories. From then on, many developingcountries in Asia and Latin America stepped on the great road of financialliberalization in wide scope, driven by economic and financialglobalization and their own demand of macro economic reform. Althoughthere are many difference on these countries' reform policies in theprocess of financial liberalization, almost all countries carried out theliberalizing and market-driven policies to decrease the function ofgovernments on economic resource disposition. Within these policies,domestic banks privatization is one of important content of financialliberalization. Being the biggest developing county in this world, China'smarket-driven reform on financial field has been the very important partof financial liberalization process in developing countries. For twentiesyears, because of our limited understanding about institution transitionand market-driven reform, and we putting undue stresses on "finance isthe core of economy", the market-driven reforms on financial field inChina lag behind the reforms on whole economic system. With thecoming of tide of financial liberalization and banking privatization inwhole world, a heated academic discussion has arouses in current Chinesedomestic economic cycle, which has been emerging lots of new academicidea and practice. This dissertation takes institutional transition as the core explainvariable, tries to find the inherent rules of Chinese private capital enteringChinese banks, by researching the inherent characters of bankinginstitutional transition when private capital entering domestic banks. Theauthor concludes that it has its own inherent rules of emerge anddevelopment process of private capital entering domestic banks, whichcouldn't be controlled by policy designers. However, in our practice westill haven't kept the clear head enough to recognize this point, which isone of the basic reasons of academic discussion confusion. Focused on these questions, the research purpose of this dissertationis: to try to find the institutional base and transition reasons of Chineseprivate capital entering domestic banks gradually, under the years'conditions of finance monopolization and finance restraint; then theauthor applies the analysis method of game equilibrium to analyze thehistorical route of institutional transition on Chinese private capitalentering Chinese banks, and discusses many questions, such as:performance of happened institutional transition, finance exertion ininstitutional transition process, restrictions and abnormal questions offinance exertion, the route choice for future institutional transition andfinancial risks prevention, and so on. From the light of academic theory, this dissertation focuses onChinese financial institutional transition of private capital enteringdomestic banking, which expounds and proves some advanced theoretichypothesis of current economic system. Furthermore, on the base ofresearching Chinese cases, this dissertation also initiates some newtheoretic points to explain financial institution's emerge, development andfunction system. From the light of practice, this dissertation researchesChinese private capital entering domestic banking from a much new andspecial angle, expounds the inherent development rules of Chineseprivate capital entering domestic banking, and puts forward many feasiblesuggestions on reform policies.â…¡ The research thought of this dissertation is to use the equilibriumresearch methods (game equilibrium and demand/supply equilibrium) toresearch happened institutional transition of private capital enteringChinese banking in this transition period, expound the inherent rules ofprivate capital entering domestic banking. Based on the above research,this dissertation uses the standard research way to analyze thesetransitions' gains and losses, then concludes the route of further transitionand risk prevention...