The International Comparison On Governance Structure Of Listed Commercial Banks

From the viewpoint of the world, how to enhance the comprehensive management performance of listed commercial bank with the optimization of corporate governance structure, has been the hot issues on today and future. It was the inherent problems of corporate governance which cause Asian financial crisis in 1990s and global sub-mortgage loans crisis on 2007.After the reform and open, the economic system was comparatively enclosed, and the economy was greatly governed and protected by government in our country. The bank system mainly composed of four state-owned commercial bank has many problems, such as the singular of ownership structure, and high ratio of bad loans, and unreasonable structure of corporate governance, and the absence of owners, and poor management performance and risk prevention capacity. In another word, the competition of Chinese bank is low. After the entry of WTO, the economy of our country totally connect to the world, and the famous and strong bank is strategically penetrating to domestic financial market. But due to the low competition compared to that of foreign bank, so the system of our country is not totally open, and it provided a precious period of adjustment. During the competition with foreign bank, the area of commerce and academy aware that efficient and reasonable structure of corporate governance is the basis of enhancing the competition of bank, and the key to the development of bank industry and the smoothly running of national economy. Our country also put forward a series of greatly targeted reforming measure:from 2005, we accelerate to promote the progress of commercial bank reconstruction of our country in the way of dissection of bad credits, and introduction of strategic investor, and reform of equity division of capital market, etc. We have had already 14 commercial bank which had listing qualifications on domestic capital market and HK capital market by the end of 2008.The number go up to 16, with the list of China Agriculture Bank and Ever bright bank on domestic capital market in 2010.Although modern corporate system has been established for listed commercial bank of our country, it is undeniable that Chinese commercial bank is the product of planned economy, and it has heavy state-owned attributes. So there must be many institutional obstacles for the reform of the governance of commercial bank during the process from planned economy to market economy. So we should draw the advanced experience from developed entities, to continuously improve the set of ownership structure, and the choice of shareholders properties, and the size and independence of the board, and efficiency of salary incentive system, and so on. We should make comprehensive reform from both inside and outside of the corporation.Commercial bank governance isn't the general utilization of corporate governance theory, but is unity between corporate governance theory and the particularity for commercial bank as financial intermediary. The particularity is from industry characteristics, and financial contract, and financial product, and external environment. There are more complicated and heavy benefit contradicts with more stakeholders during activities of bank. So the main target for listed commercial bank governance is not only to ensure the benefit of shareholders and creditors, but also to constrain and limit the big shareholders activities that harm the benefit of small and medium shareholders, and depositors, and guarantee agencies. The steady business and high-efficiency risk control is ensued by reasonable institutional arrangement. Therefore, this paper establish analytic frame from three aspects of equity structure and shareholders properties, and the size and structure of the board, and executive pay on the basis of the reform of governance and mode explore.â… make the empirical test to the relationship between governance factors and comprehensive management performance of commercial bank from the point earning capacity and risk control capacity, by selecting representative index variables. So we could research the particularity of the commercial bank governance structure and mechanism, and put forward the countermeasures and suggestions to the optimization of commercial bank governance structure for the reality of our country.The paper is divided into five chapters, and the specific is as such:The first chapter is the introduction, mainly to clearly explain step by step the purpose and meaning, and the research thinking, and the structure and content, and the research methods, and the innovation and flaw of the paper, to make foundation for the rest.The second chapter is the theory basis to listed commercial bank governance structure.â… define clearly the relative concept and category at first, and then analyze general theory of corporate governance, including entrust-principal theory and stakeholders theory and corporate financing contract theory, etc.â… would apply corporate governance theory to commercial bank governance and analyze the particularity of commercial bank governance structure on this basis.The third chapter is the comparative of listed commercial bank governance structure of America and Japan, mainly to analyze American style characterized of external-market governance, and Japanese style characterized of internal-board governance.â… would find out the differences and commons, and summarize and refine the beneficial conclusion, by investigating three aspects of equity structure and shareholders properties, and the size and independence of the board, and the efficiency of salary incentives.The fourth chapter is empirical analysis to governance structure and comprehensive management performances of domestic listed commercial bank. The part focus on the characteristics of domestic listed commercial bank governance structure.â… would make a series of hypothesis at first, and select the index of five banks as economic variables from 2002 to 2009, including weighted net asset return ratio and bad loans ratio and first-ten shareholders ratio and the ratio of state-own shareholders, and so on.â… would investigate the influence of domestic bank governance structure to earning capacity and risk-control capacity in the way of establishing panel data model, and on detail analyze the empirical conclusion.The fifth chapter is the reference to American and Japanese experience and some suggestion to the reform of domestic commercial bank governance structure.