| The governmental governance in commercial banking refers to the organizational and institutional arrangement of regulatory authority, approach and method in terms of governmental regulation. This includes the "last resort" arrangement of central bank, the deposit insurance, the entry and exit regulation as well as other related legal infrastructure all of which are designed to reduce or prevent the possibility of bankruptcy and further tackle the financial crisis. Generally speaking, the government's governance is composed of two major parts: the regulation by governmental authority and the regulation by law .In general, the governance of commercial banking can be divided into three main categories: the internal governance, the market governance and the governmental governance. Most of the existing researches focus on the internal governance and the market governance while the research of the governmental governance is still very rare. But in Chinese reality, the internal governance still needs a tough period to improve while the outside markets such as capital market, manager market and M&A market are also far from complete. Combining above considerations, the research into the governmental governance is of particular importance.This paper clarifies the definition and classification of the governmental governance in commercial banking. Secondly, the importance and necessity of strengthening the governmental governance are presented. After combining the above research and the practical experience of U.K., U.S., Germany and Japan, several important aspects that may be taken as examples are analyzed. Last but not least, based on the analysis of Chinese commercial banking industry, the author argues that the immediate task of Chinese banking reform is just to improve the governmental governance; the second step is to establish and further streamline the effectiveness of markets; the long-term goal is to change the situation of ownership structure existing. |
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