The Research On The Development Of The Private Governed Bank In China

Since 1990, private economy has grown up, the openness of society and economy has increased, and the prejudice to the possession has been eliminated. In such realistic background, the theoretice field and industry field has call for the development of private banks.Currently there is no accordant definition of the private governed bank. I define it as joint-stock commercial banks whose private asset exceeds state owned asset. It develops from the financial demand of economy units naturally , and has the administration structure of modern bank . It obeys the regulations of the Commercial Bank Law , and runs under the supervision of the financial supervisory department. The paper discusses three questions : why should the private governed bank come into being ; how can they be formed ; what should the government do for the development of private governed bank.As a kind of system innovation ,the appearance of private governed bank has solid foundation in theory and reality . The realistic foundation of private governed bank'emergence can be divided into endogenetic factors and ectogenic factors. First, the financial demand exceeds the financial supply in the rural areas. Second, the financial demand exceeds the financial supply in the medium-small enterprises. Third, unregular finance organizations exists widely in backwards areas and developed areas. Fourth, the enter of WTO brings the banks more pressure . Fifth , the reform of finance system should be pushed urgently. So the emergence of private governed bank is the general trend .The emergence of the private governed bank has two modes .One is to build the new private bank, the other is to reform the current banks. I discuss the inevitability of two routes from the angle of improving the competitive edge .The private bank should develop step by step , and obey the principle of market leading .Government plays an important role in the development of the private governed bank . First , the rules of entering and exiting should be formulated. Second, the supervision to the management of the private governed bank, should be reinforced Third, the market surroundings should be perfected.