Research On Corporate Governance Of Banks

The Asian financial crisis in the 1990s made people realized the significance of the financial institutions'corporate governance, and directly up surged the research on corporate governance of the commercial bank in the whole world. In September 1999, the Basel Committee on Banking Supervision issued"Enhancing Corporate Governance in Banking Organizations"made the issue of commercial bank's corporate governance the focus of the global theory circle, banking industry and all governments.In China, with the deepening of the financial system reform, especially bank reform, the issue of commercial bank's corporate governance is increasingly concerned about. We have to alert to the problems faced by China's commercial banks such as high ratios of bad loans and weak management. Meanwhile, with the entire openness of financial services at the beginning of 2007, domestic banks must have to compete directly with foreign banks. Improving competing ability fundamentally lies in the robustness of corporate governance. Against this background, the research on the issue of commercial bank's corporate governance, especially mechanism, features and effect of China's commercial bank's corporate governance has particularly practical significance. China's commercial bank initially realized the diversification of equity structure, and established the frame of modern corporate governance, that is the"three committees and one level of management". However, the in-depth problems such as internal operating mechanism of commercial banks have not made fundamental changes. The difficulties and complexities of this reform must be deeply understood. China's commercial banks still face serious challenge coming from the corporate governance structure, so enhancing the research on this subject has theoretical and practical significance.This thesis studies the specialty of bank's corporate governance from the capital structure perspective, and discusses equity governance and debt governance of the bank's corporate governance. The specialty of bank compared with general company lies first in the specialty of its capital structure. Therefore, studying the bank's corporate governance from the capital structure perspective is a reasonable angle, and it can help understand the specialty of the banking industry from its resource and essence, then come to realize the specialty of the banking industry's corporate governance, and at last take a step further to guide the practice of corporate governance in the banking industry.Among the theories on corporate governance, this thesis chooses the Stakeholder Theory as its main theoretic tool. If in general corporate governance of other companies it is still doubtful whether the Co-governance Theory of the stakeholders should be followed, it is convinced that the principle of shareholder interest maximization is not suitable due to the specialty of bank's capital structure, but switches to the Co-governance mode featuring protecting the benefits of the creditors. For all the reasons above, this thesis chooses the Theory of the stakeholders as the main theoretical foundation.This thesis has 3 parts. The first part is literature review. The second part is the main part, and focuses on the corporate governance of the banking industry from the capital structure perspective, including the study on banking industry's capital structure in chapter 3, the study on banking industry's equity governance in chapter 4 and the study on banking industry's debt governance in chapter 5. The third part draws a conclusion based on the research above. The objective mode choice of banking industry's governance in China is the co-governance of shareholders and creditors.