The Plight Of The State-owned Commercial Bank Reform And Institutional Innovation

New Institutional Economics has definitely advanced such a conclusive proposition that institutions are important, however, it has not provided any method for establishing efficient institutions. The reason for such a fact is very simple, which lies in that the standards for efficient institutions vary with different environments and conditions. Such a phenomenon is more outstanding in China as this country is in a period of transition and many things are instable, which results in that there is no fixed theory sufficient to explain and resolve the current problems and the reform will be a long-term and complex process. In consideration of the complexity of the reform, it's necessary for us to justify, argue and criticize it from all respects, based on which this article advances an idea on the reform of state-owned commercial banks that differs from the existing primary idea.The more than twenty years'reform in China represents that the reform of banks relatively falls behind the rural land reform and the state-owned enterprises reform. Such a fact is related to the complexity of the banking industry, which decides that the methods applicable to the reform of other economic organizations probably are not applicable to that of state-owned commercial banks. It's natural and inevitable that the primary proposal is to reform property rights when providing proposals for the reform to such a country that is in the transition from plan economy to market economy, which is determined by that one of the basic reason for the low efficiency of plan economy is that the enthusiasm of the staff cannot be aroused under plan economy by virtue of that property rights and then residual claims are not determinate. Therefore, it is undoubtedly vital to push forward the reform of property rights.Based on the aforesaid grounds, however, it does not mean that the reform of property rights can resolve all problems existing in state-owned enterprises because each theory including the theory of property rights is applicable only in certain environments and certain conditions. The complexity of the transition period in China decides the possibility of the failure of the property rights theory, which exists in state-owned commercial banks.Then is such possibility tenable in the state-owned commercial banking reform in China? No uniform understanding will be reached only through subjective guesswork. We must find out the basis in the reality. Through the comparison and analysis of recent...