The Study On Moral Hazard In The Four Biggest Commercial Banks Of China

The four biggest commercial banks in China are the main body of our banking and their success has relation to the safe of Chinese economy. Because of this, the four biggest commercial banks' reform is being concerned by all sides of China .The bank's moral hazard was being cared because of the exposal of it. But research on moral hazard in China is not so long and began to it with the spreading and worsening of the Asia financial turmoil.The thesis study on the moral hazard of the four biggest commercial banks in-depth comparatively, especially to elaborate and analyze the cause of it in detail, and put forward some valuable suggestions in theory and practice on keeping away and uncoiling the moral hazard. The thesis talks about from the derivation of moral hazard and summarizes the literatures and practices on banks of abroad and China in chapter one. In chapter two, we describe the moral hazard systematically existing in the four banks and theses moral hazard problems conclude commercial banks self , governments, borrowers, regulation institution and state-owned property branch and etc. In chapter three, we demonstrate the reasons of moral hazard . There are such reasons : the supervision on the four banks of the whole people as the principal is seriously not enough; government's implicit guarantee and "too big to fail"; outer-regulation is too sick ; the absence of credit in china; the principal-agent chain is too long so that the information are seriously asymmetrically; organization frame is not reasonable and inner-control is too sick; the incentive and performance appraisal are not reasonable ; the revolutions increase hazard. In chapter four, we put forward some advice . We shall cany out the four banks' property right system's reform; change the four banks' organization frame; set up deposit insurance system ; strengthen credit construction ;build up and perfect the incentive-restriction system on operators; enhance and the inner-control and outer-regulation; foster organization culture carefully and for a long.The thesis breaks through the study on moral hazard of the four commercial banks in single backdrop. We study the moral hazard in principal-agent theory and management theory and principles of economics, such as from macroeconomic- microeconomic and inner-outer. We believe that the moral hazard won't become the factor which restricts the development of our banking in future.