Model Selection Of Commercial Banks' Participation In Corporate Governance

Corporate governance has always been the concern and favor of economists. Breaking through the limitations of traditional shareholder primacy theory, stakeholder theory greatly enriched and developed modern corporate governance theory and also provides theoretical basis for commercial banks in participating in corporate governance. With the deepening of economic reform in China, "insider control" problem of Chinese enterprises becomes increasingly serious, meanwhile, as creditors of enterprises, Commercial banks'interests have been seriously eroded and a large number of non-performing loans rise. It is possible and necessary for commercial banks to participate in corporate governance. What should be discussed urgently now is how Commercial banks can play their role in corporate governance as the biggest creditor of enterprises. This paper attempts to generally explore the function mechanism of commercial banks'participation in corporate governance, and then based on present situation of our country, this paper put forward contingent bank governance model by learning from the successful foreign practice, which provides referential experience for our commercial banks'participation in corporate governance. First of all, begin with stakeholder theory and financial intermediation theory, theoretical basis of commercial banks'participation in corporate governance is presented, and necessity and reality requirement is analyzed. Then, the current condition and problems of commercial banks'participation in corporate governance is analyzed. Especially, lay stress on external environment factors to prepare for model selection of Commercial banks'participation in corporate governance of China. Moreover, compare and contrast two foreign models with China to explain why China cannot copy and what can be learned from them. In the end, a reasonable model for China, called contingent bank governance is put forward and explicitly defined. This paper elaborate on that why this model is chosen and how it takes effect. From the system level, concrete implementation approaches for commercial banks'participation in corporate governance are suggested and relevant laws are completed.