Study On The Main Supervising And Controlling Bank System

Based on an examination of the following problems in the relation between state-owned commercial banks and state-owned enterprises as the too strong intervention of state, the soft restriction of bank credit, internal control, the inequality of the status between the banks and enterprises, the lack of effective supervision and control and the deterioration of credit environment, this dissertation explored the reform and innovation of the relation institution of banks and enterprises, and brings up the idea of constructing the main supervising and controlling bank system. The main supervising and controlling bank system concerns with a relation institution which means under the authority granted by the state government, state-owned commercial banks form bank-groups to loan to the state-owned enterprises which have the relations of creditor's rights and liabilities with banks, and exercise whole financial supervision and control and flexible management to guarantee the lawful benefits of the shareholders. This institution is not only different from the market-guiding relation institution of banks and enterprises, but also different from the relation institution merely guided by banks, and it is a relation institution of banks and enterprises guided by banks under the authority granted by the state government. This research studies the necessity, rationality and feasibility of constructing main supervising and controlling bank system from the institution researching view with the help of the theories as modern management science, systematic economics and ecology. And many methods are used in this research, such as history researching methods, compare researching methods, institution analyzing and model making methods. Firstly, the author studies the history and development of the relation between banks and enterprises in China and analyses the institution defects in the development. The defects are summarized as the following aspects including the slow speed of systematization advancing, the inadaptability of institution grafting, the falling-behind of construction of system environment, which are the important preconditions of the innovation of the relation institution of banks and enterprises. Then, the author studies the relation institutions of banks and enterprises in the U.S.A, Germany and Japan, including the backgrounds in which institutions come into being, a comparing of both advantages and disadvantages of the institutions and their adaptability to the practice in China. The conclusion is that the two typical relation institutions in the modern world, of which one is the market-guiding one represented by the U.S and the other is the bank-guiding one represented by Germany and Japan, both have their special backgrounds and successful experience in their own countries. Thus we can not copy them but can only take them for references, and that is the impetus for us to make up our minds to find out the relation institution of banks and enterprises, which is suitable for the situation of our own country. Furthermore, the author analyses several important evolution process of the relation institution of banks and enterprises in their development history worldwide, including the shift from unlimited responsibility system to limited responsibility system, the shift from unwilling bankruptcy to adroitly willing bankruptcy and the transitional course of the mixed business-separated business-mixed business in the bank operation. The analysis gives a further knowing, that is, the conflict of interests is the basic advancing impetus of the relation institution; the interposition of state is the external macro-mechanism to handle the relation between banks and enterprises; the banks guidance is the effective measures to carry out supervision and control to enterprises and separated operation is an important way to the specialization of bank operation and the standardization of the relation between banks and enterprises. The above knowing gives an important enlightenment to China, a country with strong traditional centralism, which doesn't have perfectly-grown markets and is still in the initial stage of the construction of the relation institution of banks and enterprises. On the basis of above analysis, the author expounds the theoretical and practical basis of the idea of constructing the main supervising and controlling bank, as well as a basic thought that the main enterprises are supervised and controlled with the guidance of banks and under the authority granted by state to reach a financial openness. It also discusses the theoretical basis of the main supervising and controlling bank system from theory views, namely, the theory of the mutual adaptability of institution arrangement and institution environment, the theory of beneficiary concerned and the theory of the matching of ownerships and control rights. Moreover, based on the above discussion, the author also analyses the control rights which an enterprise can give up as the precondition of accepting loans and figures out the balance point for an enterprise to get financing but give up control rights. Finally, the author gives a frame for main supervising and controlling banks systemand its key points are as the follows: the authority granted by state and the separation of the functions of government and enterprises; the guidance and separated operation of banks; the supervision and control of main banks and flexible management; restriction of the interest rates and the control of monopoly; the cooperation of bank-groups and the share of interests; macro-coordination and legal protection. In addition, the research compares the system with the main bank system being exercised presently and it also discusses the problems of credits, bank monopoly, the soft restriction of credit capital. The main innovation aspects of the dissertation include the following: firstly, the author points out a new relation institution of banks and enterprises-the main supervising and controlling bank system, and also makes a clear explanation about it; secondly, the author analyses the control rights which the banks get from the enterprises by loan, and concludes the balanced point for enterprises to give up control rights to get financing; thirdly, the author constructs the main supervising and controlling banks system, as well as analyses its support to the institution to solve the problem of the credits of enterprises, the monopoly of banks and soft restriction of credit capital .