On Incentive And Constraint System Of State-owned Commercial Banks

As everyone knows, the state-owned commercial banks are the main body of China' s banking system, and they play an essential role in China' s economic reform. In a knowledge economic era as nowadays, Financial globalization is the main melody, especially with China' s entry into WTO, domestic financial industry will be one of industries that suffer the heaviest impact, including state-owned commercial banks.Among all of the problems, insufficient motivation becomes a flask neck of the development of state-owned commercial banks. Thus, studies on incentive and constraint mechanism of state-owned commercial banks are realistically important. The motivation has two stratums according to the motivated objectives: one is the motivation that owners execute to executives and the other is the motivation that executives execute to employees. Through specific analysis of incentive and constraint system of our state-owned commercial banks, the author puts forward the solutions include proper salary systenu stock option encouragement perfection of supervision and constraint mechanism etc.