The Change Of American Commercial Bank Institution And Its Enlightenment To China

As a science, western economics seems to be superior to the other theories in economics and other social sciences in such aspects as analytical capacity and empirical research, but the mainschool economics theory neither offers the convincing explanation to real world's numerous economic phenomena, nor open policy prescription to solve the great economic problem. Its explanation for actual life didn't satisfied people until the rise of new institutional economics in middle period of 1970s. The so-called new institutional economics, just as its founder Ronald?Coase said, is a economic theory, which analyzes various institution by the methods of mainschool economics(neo-classical economics). Professor Coase said, contemporary institutional economics should proceed from people's reality to study people. The person in reality moves about in the condition of restriction given by realistic institutional. Generally speaking, new institutional economics includes four basic theories: expenses theory of trade, property right theory, enterprise theory, institution change theory. The change theory of institution is an important content of new institutional economics. Its representative figure Professor North emphasizes, it's undoubted that the innovation of technology has injected vigor into economic growth, but if people have no impulse of institution innovation and institution changes, pass a series of institution (Including property relations, legal systems, etc.) to consolidate the achievement of technological innovation, then long-term economic growth and social development in human society can not be imagined. In a word, Professor Noth believes institution has a decisive effect in determining a national economic growth and social development.In 2006, the Britain magazine-Banker released a rank of 1000 largest banks in the world. The profit of 197 banks of America accounted for 26.5%, first class capital total value accounted for 20.7%, and assets total value only accounted for 13.7%. Among the first 25 world banks, 5 American banks created a phenomenon which get larger profit and take smaller assets than average level. The return on capital of American bank is up to 29.1%, far higher than the average level-22.7%, which showed extremely high efficiency. These remarkable results from the development of the American commercial bank over last a century changes. The history of American commercial bank can trace back to the colony period of the 17th century. But after the crisis of American bank of 1933, it began to rise and be prosperous. Through the perspective of new institutional economics, combined the development history of American commercial bank with the institutional change theory, this paper has emphatically analyzed the course of the American separating-operation bank institution's setting-up and development, the course that the American banking came back to the multi-operation institution during the last stage of the 20th century, and have represented how the "economic people" realized the goal of one's own in the government's chess match, and how the U.S. government utilized one's own superintendent's identity and played a specific role during the banking institution reform.At the end of 2006, Chinese Government unlocks the business of RMB in an all-round way to the foreign banks according to the commitment while entering the WTO. Then the banking of China faces unprecedented competition and challenge: what we will do to makes the commercial bank of China big and powerful, where reform in financial institutional of China will be moved towards, what kind of function Chinese Government should play during this change. From this point, it's very important for our banking reform to summarize and use the experience that American commercial banking had developed for reference.This text is divided into four parts altogether. The first part presents the basic conception of institution change in new institutional economics: institution's definition and composition, the reason, course and model of institution change, which do theory foreshadowing for the analysis institution changes of American commercial banking.The second part briefly introduces the connotation and goal of the commercial banking institution. The commercial banking institution is arranged by such formal institution as the law, agreement, rule, etc, and such unofficial institution as credit idea, financial consciousness, bank corporate culture, etc. Mainly, the existences of the banking institution help the banks realize the operational objective: security, mobility, profitability.The third part is the analysis in the time line, which has analyzed the reason, course and result of American banking institution changes so far of 1933.According to the different chief leader and reason, the course of reform is mainly divided into three stages to discuss. First, at 1933 it is the setting-up and consolidating of the American commercial bank's separated-institution. This is a kind of government-led and radical change in the mandatory institution model. The implementation of separating-operation institution played the positive role under the special background, but the institution implemented over half a century is a policy of non-Pareto improvement. It is impossible for such management institution to reach a kind of balanced state. After World War II, the commercial banks utilized the law's loophole to realize the goal of one's own while expanding the business scope actively through the innovation of managing means. The reform of American banking is mainly shown as the inductive institutional changes of demand in this period. It is a kind of reform from bottom to top, which has the advantages of profitability, advancing gradually, spontaneity, but following some inherent shortcomings at the same time. For instance: the formal institutional lags behind the reality for a long time, the institution demand gap is great, the reform cost is great, and have the tendency to accumulate backward, be difficult to reform completely, the key institution is difficult to break through, and so on. It is that the American banking made the return to multi-operation institution in the 1990s finally. On Dec 12th 1999, " Financial Services Modernization Act of 1999" was published, which meant the separating-operation institution implemented for over half a century in U.S.A. come to the end. This is a change combined inductive institution changes with mandatory institution changes. In the course of operating separately to the return of multi-operation, there are net incomes which are greater than zero between the government and large-scale banks, while the other social interests stratum: the enterprises and residents are the beneficiary too in this course. The multi-operation banking institution is similar to Pareto improvement. The changes towards multi-operation banking institution make the banking institution more balanced, which makes U.S.A. not meet great obstacle in the banking institution reform.The fourth part combine the concrete conditions of our country, use the analysis result of American commercial banking institution changes, announces its enlightenment of the management institution reform of bank for our country. To bank reform, there're much in common between China and U.S.A. The commercial bank of China successively went through the all-round bank, operated separately and is under the course of exploring multi-operation at present. In order to integrate with the international financial market and explore a bank management institution in conformity with concrete conditions of our country, the government and commercial banks should co-operate each other. On one hand we should adjust government's function, on the other hand advance the reform of commercial bank's own institution actively.