Research On The Contract Relationship And Mechanism Of Governance Of Chinese State-owned Bank

The latest foreign research on the mechanism of governance of debt contract seemed help for the reform of our state-owned bank. But because China is on the way of institutional change, there will be much institutional obstacle that will delay the use of those latest theories. The thesis especially analyzed the institutional causes by contract theory. Contract theory has yield much on the complete contract and incomplete contract research. By those theories, the author found that, in the mechanism governance of the early debt contract of state-owned bank, the state-owned bank was unwilling to perfect the mechanism of governance and the firms were show intensive mortal risks because the item in the debt contract was restricted by the law and government. These problems rooted on that special history situation and make great economy lose. But the debt contract follows the rule of institutional change, so that the institutional arrangement was changed gradually to make the mechanism of governance more effective. And during this procedure, the government who invest and supervise the bank, play a key role.