An Study Of Ownership Structure And Efficiency Of Commercial Banks

Finance is core of the economy. a country's financial system may directly affect the entire economy development.Since 20th century, there are many crisis, such as the Great Depression, the outbreak of the debet crisis in Mexico, Brazil, Argentina and Southeast Asian financial crisis, all of these crisises are because of the worse banking system. Even last year's outbreak of America's subprime mortgage crisis become worse since these problems spread to the banking system. After the collapse of a large number of banks,we face to a worse situation, especially Citibank's bankruptcy. Bankruptcy will cause a chain reaction:a large number of depositors will withdraw their cheques, which will result in short-term bank liquidity, when banks are facing an economic crisis, as a rational response would be reducing the money supply and loans for short-term,these responses will result in serious cash-flow shortness, and result in a greater losses of the whole economy.Therefore, how to ensure the safety of bank assets, how to improve the efficiency of the whole banking system, how to raise the efficiency of the allocation of resources in the market economy, and how to safeguard financial security has become a major issue.This article first discuss the concept of property rights, bank efficiency, property right's the basis of economics and efficiency studied method, Then, different scholars at home and abroad study the relationship between Property and the efficiency of commercial banks, although they have different viewpoints, they come to an opinion,which the property rights affect the efficiency of commercial banks.In order to fully demonstrate this conclusion, we demonstrate by the theory and empirical study. In theory, this paper details how property rights influence the efficiency of commercial banks:First, property rights influence efficiency by principal-agent structure, Second, property rights influence efficiency by corporate governance mechanisms. On the empirical part, this paper has changes on joint-stock reform and the banks to be listed, the artical use econometrics software to analyze the relationship between ownership structure and efficiency of commercial banks, we come to a conclusion that ownership structure does affect the efficiency of commercial banks, Finally, this paper puts forward to corresponding measures and suggestions based on earlier theoretical and empirical analysis.