Research On Difficulties And Methods Of Transform Shareholding System Of State-owned Commercial Banks

After taking part in WTO, with the quickening of the pace opening to the outside world of our financial market, State-owned commercial banks face more serious competition. Besides, defects in the system of property right of State-owned commercial banks have become the most serious problem of financial reform. In this case, transformation shareholding system has become inevitable to make State-owned commercial banks develop into the large modernized business banks with perfect management structure, sound operating mechanism, clear operating objectives, good financial situation and strong international competitive power. The article has explained the difficulties of Chinese state-owned business banks carrying on shareholding system transformation and provided the methods to resolve these difficulties.The article consists of four chapters. The first chapter recounts the essential theories related in the article. The second chapter points out the problem existing in the property right of Chinese state-owned commercial banks, and propose it is inescapable to transform shareholding system of state-owned commercial banks. The third chapter presents two difficult points of Chinese state-owned business banks carrying on shareholding system transformation. One is large number of bad loan; the other is lower capital adequacy. Besides, we analyze the reasons to result in the two difficult points. In the forth chapter, we provide some measures to resolve the difficulties of Chinese state-owned business banks carrying on shareholding system transformation. In the first section, we analyze that setting up Assets Management Corporation is the most effective method to deal with the substantive bad loan. In the second section, we suggest countermeasures to increase the abundance ratio in three aspects. One is to increase core capital, the other is to enhance supplementary capital, and the third one is to reduce venture capital.