Shareholding Reforms Of State-owned Commercial Banks And Their Coming On The Market

Since the foundation of China, the four state-owned commercial banks, dominating the financial resource as the most important part of financial system in China, have been playing an outstanding role in the national economic construction. However, with the constant reform of economy and finance, a few conflicts and problems hidden deep in the state-owned banks have begun too ccur, such as the high rate of non-performing capital, the lower capital adequacy ratio, poor management, the bad support to the enterprise and etc. What's more, the current reform of state-owned commercial banks including the commercialization of the state-owned special banks in 1994, has just focused on the converting management mechanism, through which the operation characterized by policy seems to peel off, but not the system of property right in depth. Therefore, at the approach of financial opening to the outside in 2006, Chinese economy and society have been more and more influenced by the globalization and have become more and more prominent. Under s uch c ondition, t here s hould beat horough s hareholding reform within t he state-owned commercial banks, on the basis of which the banks are allowed to come onto the capital market, and thus set up is a modern banking system featuring "clear property rights, clarified right and responsibility, separated government and enterprise, scientific management".Based on the most experts' views on the above mentioned problems, this paper first reviews the reform history of the state-owned commercial banks. Then it suggests that a better way of changing the present status should start to reform the shareholding system and put it onto the market by analyzing the current existing problems and deficiency in the state-owned commercial banks in China; the developing trend of overseas commercial banks, a comparison between the domestic listed commercial banks and the four state-owned commercial banks. And then the paper expounds the significance of the shareholding reform and coming onto the market from the aspects of banks themselves and the whole national economy.