Commercial Bank Supervision And Corporate Issues

Bank monitoring is an important function of bank. Making it work properly is beneficial for bank, firm and society. However, in China this function is destroyed. How to make it work properly is the main mission of this thesis.The rest of this thesis is organized as follows: The background of this study was summarized in the first chapter. In chapter 2, I reviewed the classical study in the subject of banking monitoring. Then I analyzed the benefits and costs of bank monitoring in chapter 3. In this chapter I found bank monitoring could ease many difficulties of bank and firm and it could also boost the economic development. In chapter 4 I analyzed the effect of corporate governance, competition, and firm's liquidation value to bank monitoring. I found good corporate governance, releasing banking industry control and enhancing firm's liquidation value could promote bank monitoring. Then, in chapter 5,I summarized four basic methods of bank monitoring and analyzed Japanese main-bank system. At last, in chapter 6 I used the frontal conclusions to analyze the bank monitoring problem of China's state-owned bank and outlined how to improve the monitoring function of China's state-owned bank.