A Legal Study On The Marketization Reform Of City Commercial Banks

City commercial banks are the major part of Chinese financial industry and have a special position because of their special way of establishment. Their formers are city credit cooperatives, which played an important role during the initial stages of reform and openness. In order to remove the evils, based on the city credit cooperatives city commercial banks are established. With the deepening of the reform of Chinese financial system, more and more problems are exposed on city commercial banks. After the successful reform of stated commercial banks, city commercial banks are attracting more and more attentions. The academia has made a serial of studies on the reform of city commercial banks and plenty of reforming measures have been adopted. The basic thought is to marketize city commercial banks. It starts on three aspects. The first is to permit city commercial banks to operate multi-regionally. This measure will make some powerful strength break through the regional restriction and gradually develop. The second is to optimize the share structure. This measure is fit to almost all city commercial banks because there exists the problem of unreasonable share structure and incomplete corporate governance in city commercial banks. The third is the union and recombination of city commercial banks. This is the request and result of Marketization reform of city commercial banks. The market competition prompts city commercial banks to unite or recombine according to their specific conditions. The result of market competition is to select the superior and eliminate the inferior. Some city commercial banks unite or recombine with the other, or merged by the other. The present study on Marketization reform of city commercial banks are mostly on the perspective of economics and financial science. This thesis plans to make a study on the legal problems during Marketization reform of city commercial banks from the legal perspective. The thesis is consisted of three parts: the guide, the text and the end. The text is consisted of five chapters. The first chapter is the summary. Beginning with the system changes of city commercial banks, this chapter analyses its legal character, position and function, which gives people the elementary knowledge of the history and status quo of city commercial banks. The second chapter concretely discuss the major problem during the development of city commercial banks—the incomplete corporate governance and analyses the cause, which are the unreasonable share structure and the government-led compulsively establishment of city commercial banks. In order to resolve this problem, the Marketization reform of city commercial banks is advised. The specific legal approaches are multi-regional operation, optimization of share structure, the union and recombination. The third chapter particularly the legal problems on multi-regional operation of city commercial banks, including the legal regulation of multi-regional operation, the conditions of multi-regional operation, the patterns of multi-regional operation and so on. The fourth chapter particularly discusses the legal problems of optimization of share structure of city commercial banks and advises two approaches: the introduction of non-stated investment and foreign investment. This chapter analyses the necessityand possibility of the introduction of non-stated investment and foreign investment into city commercial banks, the choice of investment bodies, the patterns and percentage of shareholding, and the legal regulation on these financial activities. The fifth chapter particularly discusses the legal problems on union and recombination of city commercial banks and conceives two patterns for the development of city commercial banks: the regional stock commercial bank and city commercial bank financial holding corporation.