Research In The Pattern Of The Management Of The State-owned Property Of The Banks

As the state-owned commercial banks which are Chinese Industrial and Commercial Bank, Bank of China and Chinese Construction Bank issued the stocks in the Hong Kong Capital Market and the domestic Capital Market successfully, the traditional concept of the state-owned assets of the banking has changed. The state-owned assets of the banking has not been the vague and lacking details or specifics concept which means that the state-owned assets of the banking is the assets which earn the benefits in the fields such as banking, securities and insurance. The state-owned assets of the banking imply the state-owned property of the banking. The change in the concept is very important; because it means the management system of the state-owned assets of the banking has been different from the traditional one. The task of the management system has changed into administering the property through the market from administering the assets. It doesn't only happen in the banking, but also happens in the fields of the securities and insurance. It only takes 2 years after the SAFE Investments (a state-owned enterprise under the State Administration of Foreign Exchange) invested 45 billions dollars to Chinese Industrial and Commercial Bank, and Bank of China. The changes are exciting; because it means our reform of management system of the state-owned property of the banking has a successful beginning. Meanwhile we must keep calm all the time, a thing is not done until it is done (fall short of success for lack of a final effort), the perfection of the system, the improvement of the management, the development of the thoughts needs much time and many efforts.Finance which is representing for the banking is the core of our economy. As the progress of the internationalization of the finance speeds up, the competition become much sharper and the structure of the ownership become more diversified, it is very urgent to strengthen the administration of the state-owned property of the banking. The key of the management system of the state-owned property of the banking is to establish a series of effective systems in order to keep the control of the banking by our country and avoid more administrational interfere in the banking. Based on the research of the process of the reform the state-owned banks abroad, we find out that there is no common pattern which we can directly imitate. And we can only make the choice which can satisfy every important participator according to the former experience and the real situation. Under the purpose above this paper study the transition of the management system of the state-owned assets of the banking systematically, summarize the main problems of our system, and give my own suggestions as to the selection of the pattern of the system of representative which represent the state property.One of the characters of modern company is that the management right is separated from the ownership of the company. Just the separation leads to the information asymmetry problem. And this problem results to the creation of the Principal -Agent Theory. The key of the system reconstruction of modern enterprises is to deal with the problem of agency by the effective arrangement of the property, the reasonable design of the rules and the introcontrol system. The Principal -Agent Theory can supply the useful analytical instruments for the solution of the problem. In my opinion through the point of view of the Principal -Agent Theory we can choose and improve the system of representative which represent the state property more conveniently. We can conclude from the above that value of my paper lie in the selection of the pattern of the system of representative which represent the state property by studying the domestic and foreign reformation of the management system of the state-owned property of the bankingThere are four parts in my paper. The first one explains the basic conception and the Principal -Agent Theory, expound and prove the necessity of the establishment of the management system of the state-owned property, whom core is the management system of the state-owned property of banking. In the second part I study the history and the problems of the management system of the state-owned property of banks in China. Based on the conclusions of the second part I choose some typical countries, such as France, German, Transition Countries in Middle and Eastern Europe and Singapore, study the transition of their management system of the state-owned property of banking, and summarize the main patterns and developing tendency of the management system of the state-owned property of banking abroad. According to the main problems of the second part and the experience of the third part I draw a conclusion that we must choose the pattern of indirect management under the condition that the government must have more than 50% property of the commercial banks. In the last part my paper analyzes the present pattern of the system of representative which represents the state property, points out its problems according to the Principal -Agent Theory and gives my policy suggestions about the problems above.