Research On The Corporate Governance Of The Regional Small And Medium Sized Banking Institutions In Our Country

With the rapid economic development, China's small and medium-sized commercial banks have made an indelible contribution to the local economy especially to the small and medium-sized enterprises by its flexible, diversified operation mechanism and relative advantages, which are playing a more and more important role in the banking sector. Moreover, it is becoming an indispensable component part of China's economic development. However, there are some stumbling blocks on its way to develop, of which the corporate governance issue is the most prominent. In order to enhance the competitiveness of local small and medium-sized banks, the urgent matter is to establish a scientific and effective bank corporate governance mechanism.Therefore, a deep research on the governance situation of local small and medium-sized banks and exploration on the way out of consummating the corporate governance has a theoretical and realistic significance to the small and medium-sized banks'sustained and healthy development. This dissertation tries to apply modern enterprise theory and related theory ofcorporate governance system to fully govern city commercial banks and rural credit cooperative's internal company including further exploration of ownership structure, board structure, incentives and other issues respectively with a view to provide reference for the reform and development of local small and medium-sized banks. This dissertation firstly introduces the development situation of China's local small and medium-sized banks and then focuses on fully and systematically analyzing the governance situation of city commercial banks and rural credit corporative from several angles,all that is the principal part of this dissertation. Secondly, this dissertation studies the corporate governance issues of American community banks and Japanese small and medium-sized banks and compares their governance situation. I summarize the enlightenment of improving China's local small and medium-sized banks corporate governance combining with China's actual situation based on the comparison. Finally, some directed and feasible ideas of advancing China's local small and medium-sized banks corporate governance are brought forward. As for the city commercial bank situation, what should be done is to make ownership structure appropriate diversified and to solve the state-owned shares'superpower problem; establish and fulfill independent director system, strengthen the independence of the board, intensify its functions.; enhance the authority of the board and design incentive-compatible incentive policies. As followed, with regard to the existing rural credit cooperatives problems, this dissertation proposed to improve management of the provincial association and ease the contradiction between control rights and ownership, making the rights, duties and benefits of governance institution clearly so as to avoid exceeding authorities and vacancies. To advance equity concentration ratio is beneficial to manage democracy; establish independent director system and improve the efficiency of its decision making; consummate the incentive and restraint mechanisms of rural credit cooperatives.