Study On The Corporate Governance Of State-owned Commercial Banks: Listing And Reconstruction

Through the reform for many years, state-owned commercial banks of our country have been already changed very greatly on the system and structure. The efficiency of the commercial banks has been improved greatly too and commercial banks have played a greater and greater role in the development of national economy. However, while seeing the achievement, we have to admit, compared with the large foreign banks, that there is still very great disparity on the whole in the banking of our country and in the competitiveness. Commonly, imperfect corporate governance is regarded as the reason. For this reason, the State Council regards perfecting the governance structure of the state-owned commercial banks of our country as the most important thing of commercial banks reform and even of the whole financial system reform. In 2004, the State Council poured 45 billion US Dollars into Bank of China and China Construction Bank to substantiate their core capital by use of the foreign exchange reserve, which is preparing for their listing on the stock market. In the meanwhile, the China banking regulation commission published the Guide of Regulation and Corporate Governance Reform, which strengthened the aim of perfecting the corporate governance of commercial banks through listing on the capital market. In 2005, China uses the foreign exchange reserve again to substantiate the core capital of Industrial and Commercial Bank of China and sanction its schemes of stock reform. It is extremely urgent that the state-owned commercial banks will be listed. This paper exactly takes this as the background, discussing how to take advantage of the opportunity of listing to perfect the corporate governance of the state-owned commercial banks.The main content of this text is divided into four parts:The first part reviews the concept and general theory of corporate governance, strengthens the principle-agency's key position in corporate governance, introduces two mainstream modes in the world and thinks that the reform of corporate governance of our country should use the advanced experience and construct the corporate governance suiting our country's national conditions.The second part proceeds from the particularity of the commercial bank and general companies, analyses the features of governance mechanism and corresponding organization structure of mainstream banks in the world, carries on case analysis represented by Deutsche Bank, HSBC and Citibank, describes two kindsof corporate governance with typical characteristics and has probed into the reference value to construct good governance structure of commercial banks in our country.The third part analyses the defects of corporate governance of state-owned commercial banks, points out that listing is an inevitable choice in order to optimize the corporate governance of state-owned commercial banks, analyses the existing problems in the corporate governance of state-owned listed companies of our country, and offers reference for constructing the state-owned banks' corporate governance through listing.The fourth part proposes the way of reconstructing the corporate governance of our country's state-owned commercial banks. After defining the overall goal of our country's state-owned commercial banks, this part put forwards the suggestions on the reconstruction of corporate governance of our country's state-owned commercial banks through six parts, i.e. capital structure, the government regulation, the internal controls and risk management, construction of market and law, incentive mechanism and organization framework.