A Study On The Issues Of Corporate Governance And Reform For Chinese State-owned Commercial Banks

With the gradual promotion of the economic system reform in China, the overall opening of financial circle is approaching to us. It is the most important part of Chinese financial reform to promote competition of the state-owned commercial banks whose competition is weak and whose performance is unsatisfied at present, which derives from the incomplete corporate governance. Taking such a reality into account, the author of the article probes into corporate governance's inherent defects of the state-owned commercial banks and tries to put forward constructive suggestions on the basis of the modern western corporate governance theories and by combining theoretical analysis with positive analysis.The modern corporate governance theories include the Shareholder Governance Theory, the Major Shareholder Governance Theory, the Interest-related Individual Governance Theory, the Contingency Governance Theory and the Market Governance Theory, etc. Through the comparison and analysis of these theories, the author holds that perfect corporate governance relies mainly on shareholder governance. Therefore, we should take the demands of interest-related individuals into consideration and strengthen the cultivation of market competition mechanism simultaneously.State ownership of the commercial banks results in inherent corporate governance defects, such as intensive administrative interference, low-priced voting right, internal person control and inefficiency of market governance mechanism. With reference to the corporate governance models in developedcountries and through the positive analysis of the experience concerning the reform of the state-owned commercial banks in France, Korea S. and Czech, we should insist on the general principle of the corporate governance and adapt it to our national reality; we should promote the reform and perfection of corporate governance from internal and external factors of these banks; we should handle well the problems of interest conflict in the process of reform.The article proposes to take the two-step method instead of the existing three-step method and to consider both internal and external mechanism, that is, first we should reform under the circumstance of the state-owned proprietorship and then reform under the circumstance of shareholder proprietorship. The article also suggests setting up double-hierarchy committees of internal administration, promoting the establishment of competitive banking system, improving market competitive environment continuously in order to establish the perfect company governance mechanism of Chinese state-owned commercial banks.