The Research On Corporate Governance Of The State-owned Commercial Banks

Perfecting corporate govemance is the kernel of SOCBs' reforms and the important task of the contemporary reform of financial system in China. The research on SOCBs' corporate governance should be based on Marx's Enterprise Theory, as well as on the adoption of the current creative and practical fruits of Agency Theory and other economics theories. In the choice of the mode of corporate governance, a rational Surplus Value Sharing Mechanism should be established to protect the interest of the Stockholders and the Stakeholders.The corporate governance of SOCBs is a combination of the common corporate governance theories and the particularity of SOCBs as financial Intermediate. There is not one and only best standard of corporate governance. Besides following the new development of the principle of corporate governance closely and absorbing the practical experience of foreign banks, we should build and perfect a corporate governance mechanism which is suited to China's specific conditions, based on the system background of Transition Economy and the distinctive limitation of SOCBs in China.Now there are still lots of problems of SOCBs' corporate governance in China. Three measures could be taken to raise the efficiency of SOCBs' corporate governance. First, we should improve the State Assets Management Mode and resolve the Ownership Places Falsely (Absentee Ownership). Second, we should perfect the internal governance mechanisms and enhance the disciplining mechanisms. Finally, we should improve the efficiency of external governance and perfect the external environment of governance. This article holds that it is the primary direction of the reforms of SOCBs' Structure of Property Rights to constitute a listed company in which the state holds a controlling stake, which conforms to China's actual conditions in the primary stage of socialism. The effective ways to improve the system of providing funds by state are to turn China SAFE Investments Limited into the pure invest and holding company of the state-owned financial property as well as adopt the management mode of "Ministry of Finance-Invest and Holding Company of the State-Owned Financial Property-SOCBs". We should strengthen the disciplining mechanisms between the Shareholders' Meeting and the Board System, inside the Board of Directors and of the Board of Supervisors. We should improve the independence of the Board of Directors, build a rational incentive mechanism and make the scope of the Party Committee's functions and powers clear. By taking the measures above, the dominant function of the internal disciplining mechanisms could be developed effectively in SOCBs' corporate governance in China. Meanwhile, as the key point of the External Governance Mechanisms construction, perfecting the Information Disclosure System should be stressed, which is the basis of the external and market supervisions to SOCBs.