Research On Commercial Bank's Incentive And Restriction Mechanism In China

According to China's accession to WTO commitments, China has opened banking industrial from end of 2006. This allows the influx of foreign banks making banking industrial compete fiercely. With the localization staff of foreign banks and the development of domestic commercial banks, domestic and foreign banking institutions focus on the competition of high-level talent in management. Banking industrial as high value-added industries is the economics core of modern finance. The banking profit source is knowledge-based services, and human capital will become the core capital and wealth of finance, and human talent will become the hot pot of finance. Foreign banking industrial have scientific organizational structure and good management mechanism, especially a scientific incentive and restraint system which closely associate employee's salary levels and their contribution and performance. However, domestic banking lack of clear ownership structure and sound corporate governance structure. And internal of domestic banking lacks of good management mechanism and competition mechanism, which result in unreasonable salary system and rigid incentive in employee. It is impossible to attract and retain top talent employee, which make bank lack of force of sustainable development. So we should strengthen the banking corporate governance reform.It is the great practical significance to establish a scientific, effective incentive and restraint mechanisms, which could promote the reform of commercial banks, improve the governance of domestic commercial banks, raise commercial bank operational efficiency and enhance the competitiveness of commercial banks. This paper focuses on the problems and policy recommendations of incentive and restrictive mechanism of domestic commercial banks. It is divided into five chapters:the first chapter is introduction to propose the background and research significance, summarize the status of research domestic and abroad briefly and introduce the whole approach and content of the paper; the second chapter reviews the basic theory of incentive and restraint; the third chapter summarize the status and problems of domestic commercial banks in incentive and restraint, and research the reason and the result of the problems; the fourth chapter compared with foreign commercial banks incentive and restraint mechanisms and get inspiration to domestic banks; the last chapter construct the model of domestic commercial banks incentive and restrictive mechanism, and proposed to the remaining distribution and business performance and options linked to specific economic incentives incentive plan, emphasizing the role of long-term incentive and contain.