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

Finance, as the heart of modern economy, takes the state-owned commercial banks as its main force. For many years, the state-owned commercial bands hale contributed much to supporting the reform of the enterprises, to fostering the development of economy, and to maintaining the stabilization of society. However, with the monopolistic state-owned banding institution, they cannot conform to the market economy system since a large number of non-performing assets have been accumulating. As for this potential risk which may be triggered at any moment, it is imperative for us to initiate needed reforms.Although the stock equity reorganization and the listing may work as a path for the state-owned commercial banks to realize marketization in the transformational period, yet it can never solve the numerous existing problems. At present, the urgent task for building up the real modern financial enterprise institution is to establish and improve the corporate governance structure, which determines whether or not our banking industry will succeed in the reform.This paper, guided by the theory of market economy and based on the approaches concerning economics of money and banking, commercial bank management science, financial market science and economics of institution, conducts a systematic and deep research into the corporate governance of the state-owned commercial banks by adopting such methods as positive description, normative analysis and contrastive analysis and by integrating theory with practice.This paper focuses on the following four issues. Firstly, it gives a thorough analysis of the various kinds of problems and the correspondingharms in the corporate governance. The author believes that these problems are caused by the state-owned solely-funding system. Secondly, it holds that the reform of the stock equity structure should break through the traditional idea as well as the former framework and achieve a wider openness. In order to ensure the establishment of a sound corporate governance structure, the state must give more equities to investors when the joint-stock system reform and the open stock-subscription are implemented. The state can only act as one of the several big stock-holders instead of controlling the equity. The proportion of state-owned equity must be fairly low so that big stockholders possess the controlling right over a bank to a certain degree. Only by doing so can the new mechanism featuring competition introduced into the state-owned commercial banks. Thirdly, it suggests that the transformation and listing of the state-owned commercial bands should draw experiences as well as lessons from the operation of our listed companies, avoid the non-circulation of state-owned shares and institutional shares, reduce the adjustment cost, and prevent the phenomena such as similar share with different equity and similar share with different profit. Fourthly, it presents some specific measures and suggestions concerning the transformation of joint-stock system, the corporate governance and the band listing, which definitely defines the arrangement for the corporate governance structure of the state-owned commercial banks in different phases of reform.