The Performance Analysis On Reform Of Property Right System Of Chinese State-owned Commercial Banks

The global economic recovery slowdown in 2012, high unemployment in developed countries, economic growth rate got down in emerging markets and developing countries. European sovereign debt crisis deepened and spread. In the context of the international situation of uncertainty and increased risk of the 2011 Chinese economy still maintained a high level of growth, the level of the banking sector profitability continued to improve. This is our country adhere to the years of the reform of the financial system are inseparable. Since 1979, related to the property rights system reform of state-owned commercial banks in China has experienced the history of the enterprise, professional, commercial reform and joint-stock reform. Scientific evaluation of the performance of the property rights reform of Chinese commercial banks, to determine property rights reform in Chinese commercial banks and proposed countermeasures will undoubtedly greatly enrich and improve the existing property rights theory, starting from the limited nature and behavior of the Property Rights and state-owned commercial banks reform path selection provides a scientific theory.â… . System evolution and evaluation of the property rights reform of state-owned commercial banksThe commercial banking system of property rights is a major component in the banking system. Property rights system is perfect and efficient, is directly related to the development of commercial banks. From the establishment of a national to 2010, Chinese state-owned commercial banks experienced a period of a banking system to the specialized banks set up, and then to a complex process of the transformation of state-owned specialize banks to state-owned commercial banks and state-owned commercial banks to state-controlled commercial banks. Gradually established a system of property rights in line with modern business rules then achieve a smooth transition from a planned to a market. Taken in the process of reform of state-owned commercial banks, asset restructuring, and introduction the strategic investors and publicly traded on the steps. Among them, the successful operation of the Huijin stripped for national commercial banks non-performing loans, and laid the foundation for the publicly traded. Making state-owned commercial stake in the introduction of strategic investors to achieve diversification, not only to improve the bank's capital adequacy ratio, and brings a wealth of management experience and new technology. It can be seen from the path of state-owned commercial banks reform of property rights, including the following features:government-led, progressive, delay, and the induced.â…¡. Changing experience and revelation of the foreign banking systemThe United States, Japan and Germany as a representative of the Western developed countries, its banking sector grow in several times of crisis and war so far, and the market economy of the match being perfected. The American economic system is market-driven.Japan's economic system is bank-dominated. Germany is famous universal banks. Three countries with different features, and provide experience from operating systems, governance structure and financial supervision of Chinese state-owned bank reform. Central and Eastern European economies in transition banking reform, although its course is shorter, but the practical experience of its reform, the deepening reform of Chinese commercial banks in non-performing assets disposal and regulation of foreign strategic investors some inspiration.â…¢. Empirical analysisâ…°. Analysis of the efficiency of the property right system reform of Chinese state-owned commercial banksProperty Rights Reform in Chinese state-owned commercial banks have been more than ten years, the effect of follow-up study reform is of great significance for the deepening of Chinese financial reform. Chinese state-owned bank efficiency through the use of a combination of financial indicators and DEA methods can be found, although the two analytical methods of the former focus on performance analysis, which focuses on the analysis of efficiency, but the conclusions are basically the same.a more distinct feature of fitting a high efficiency of Chinese state-owned banks and property rights reform policies, ownership structure, asset quality, as well as banks' internal corporate governance affect significantly the efficiency of banks. Chinese state-owned commercial banks reform of property rights more obvious effects of the incentive function of property rights play. Should be noted that these conclusions were drawn based on the analysis of the bank's data indicators, and only stage inspection is to judge the effectiveness of property rights reform of state-owned banks from the perspective of the number of deepening the reform stage more through a combination of a more direct way for a lot of field research on the reform of property rights for continued research.â…±. Chinese state-owned commercial bank governance reform and business performance analysisChinese state-owned commercial banks experienced a property rights system reform have been the implementation of joint-stock, forming a corporate governance structure of the modern enterprise features. Through the establishment of the multiple regression equation, using the model of computing in the Stata software, confirmed the relationship between the influencing factors of corporate governance and bank performance, ie, the proportion of government ownership, foreign ownership, board size and commercial bank performance is significantly non-linear relationship. Equity incentives to executives also help to improve bank performance. Although at this stage, the proportion of independent directors on bank performance is not obvious, but can be seen, good corporate governance structure is the basis to improve bank performance, which has yet to be gradually perfect deepen the reform of the banking system of property rights.â…£. Property rights and path to improve the performance of state-owned commercial banksThrough qualitative and quantitative analysis of the reform process of state-owned commercial banks, we can find that the reform of property rights of Chinese state-owned commercial banks have achieved initial success. But Due to historical reasons and omissions in the reform process, property rights have also left many problems to be solved. For example, a state-owned share of ownership concentration is very high and diversified equity to be further developed. Internal corporate governance structure based on the shareholders' meeting, the board of directors and the Supervisory Board should be gradually improved. In order to meet the new era conglomeratization government regulatory role should also be changed.Through analyzed the remaining issues on property rights reform of China state-owned commercial banks, from corporate governance, management and government regulators to put forward countermeasures and suggestions to improve the performance of state-owned commercial banks.â…°. Corporate governance and improve bank performanceFrom the perspective of corporate governance of state-owned commercial banks, this dissertation believe that in order to achieve the purpose of improving bank performance, in-depth reform of property rights should start from the equity, motivation and stakeholder governance. First, through the appropriate expansion of the equity participation of foreign strategic investors, to encourage private capital into other ways to address the diversity issues of property rights reform of state-owned commercial banks. Second, improve equity incentive and restraint mechanisms. Through the empirical analysis the impact of managerial ownership on bank performance is very significant. Its advantage is that can inspire the enthusiasm of the common development with the bank. Third, practice green finance and improve stakeholder governance.â…±. Business operations and improve bank performanceFirst, According to the provision coverage, this dissertation proposes the following recommendation. Establish quantitative evaluation index system of the loan loss forecast. According to the specific circumstances of countries commercial banks to set up provision coverage and implement differential treatment. Second, the Government should properly return the power of resources dominate to the banks and according to the needs of the market, the state-owned commercial banks should select the operating items by themselves. Third, the state-owned commercial banks should further deepen the reform of property rights and promote the development of mixed operation.â…². Transform government functions and improve bank performanceTo meet the needs of the state-owned commercial banks to further deepen the reform of property rights, first, we should gradually improve the government's regulatory system. This includes the following. A regulatory policy for foreign strategic investors is "lenient entry, stringent exit". Under the premise of the state-controlled, the government should lower the standard, and gradually allow the private economy entered the state-owned commercial banks. Improve the deposit insurance system. Second, the Government should change the regulatory approach to the progressive introduction of mixed supervision. This includes the following. Establish an advance risk warning mechanism and the later quantitative analysis of mechanisms. This should gradually shift from mixed supervision in accordance with the business classification to consolidated supervision.