The Study On The Moral Hazard In State-owned Commercial Banks Of China

Moral hazard means the one that the opportunistic conducts of agents have brought to the principals in principal-agent theory,in which the gains of principals would possibly be damaged. In this thesis,the moral hazard refers to the one that the State-owned commercial banks as agents have brought to the country as the principal because of the conflict of object functions between them. With the spreading and worsening of the Asian financial turmoil,the bankrupting tide of banks has globally come,in which the myth "no bank will collapse" has been broken. During the constant exploration and study on bank crises,more and more economists have realized that moral hazard problems have severely endangered the healthy operation of the bank institution and financial system and founded some financial crisis models to show how moral hazard functions and does severe damage to the whole financial field. Chapter one introduces moral hazard's basic theories including its name source,implications,causes and effects on financial system,which shows that government guarantee and incomplete information leads to the moral hazard problem between principals and agents . Chapter two introduces the cause-and-effect relationship between moral hazards and the Asian financial turmoil and thinks that the senses of Asian value and crony capitalism have put the moral hazard of agents to the extreme. The chapter has taken the examples of the effects on eliminating the moral hazards of Japan and Korean to explain that it is impossible to completely get rid of moral hazards if no system reform has taken place. Chapter three exposes the problems about moral hazards in our state-owned commercial bank system according to its functioning system ,and operating conditions,searches for its existing causes and points out! the damages. Chapter four lists some measures of preserving and controlling the moral hazard of the commercial banks from the four aspects:property right system,investing and financing system,motivation and restraint system and cultural modification.The thesis systematically demonstrates moral hazards' existing causes and the effects such as the huge accumulation of bad assets especially of our state-owned commercial banks on our country,and lists a series of measures of preserving and controlling moral hazards,hoping to provide some suggestions for the actual business operations of our state-owned commercial banks.