The Analysis On Commercial Bank's Governance And Measures Of State-owned Bank In China

After China enter WTO, Chinese banks will compete with the international banks .So it is very important for state-owned banks to establishing really modern enterprise system . The nature of establishing really modern enterprise system is to building a good corporate governance . The corporate governance is divided into two parts, one is corporate controlling frame,the other is the motivation schemes .The former can guarantee the balance of each stock holder and the manager's operation under the supervision of the owners . The latter can build a competitive motivation schemes and coordinate the interest of the employees and employers .It can also attract talented people to stay in the firm .The paper point out the definition and basic content of modern commercial banks' corporate governance , then , the paper analysis on the feature of modern commercial banks' corporate governance between different ownership structure . Commercial banks' corporate governance is all of mechanisms and schemes what can make the business develop .The content included ownership structure, capital structure, organizational structure ,controlling mechanism and also .With different ownership structure the mode of commercial banks' corporate governance have three styles :market governance, relation governance ,administration governance .Based on theory analysis on modern commercial banks' corporate governance, the paper analysed the shortcomings in corporate governance of Chinese state-owned banks and the relation of ownership structure with governance efficiency . Also, The paper points out that the long term goals of reform of state-owned banks' corporate governance should pinpoint with the standard of modern business bank . This is establishing the banks' corporate governance which include the meeting of shareholders ,the board of directors, management,supervisory committee . Then, Create a sound decision making process,effective checking mechanisms and motivation schemes. The short term goal is reforming in the absence of owner and motivation schemes .In conclusion, The paper suggests : reforming the ownership structure, establishing inside controlling system, building the motivation schemes which based on EVA balance score card .