Research On China's Commercial Banks Absorbing Foreign Shares

This article tries to analyze the roles played by "foreign strategicinvestors" with logical train of thoughts "property rights structure-mechanism of corporate governance of bank-bank efficiency", and it adoptstheory analytical method combined with demonstrative analytical method. Inthe study of efficiency of banks this article adopts the routine financial indexanalysis and the data envelopment analysis (DEA) in the production functionapproach. Through the research the following conclusion was made: Theabsorption of foreign capital to purchase shares by China's commercial banksis not only necessary, beneficial for the banks' management, work efficiencyand competitiveness, but also safe to China's financial system. Thus somerelated measures concerning how to raise work efficiency of the banks thatabsorb foreign capital to purchase shares were proposed: By the dataenvelopment analysis (DEA), to choose their own reasonable ways to developaccordingly; Raise the proportion of absorbing foreign capital to purchaseshares; Fully develop the stimulation of managers; Perfect the related laws andregulations;And strengthen bank supervision.