Risk Taking Research On The Perspective Of Commercial Bank Corporate Governance

As one of the important sectors of modern financial system, bank has been given widespread attention. Especially in recent years, as the financial innovation and deregulation, increased competition in the global banking industry, banks continue to improve their management level to increase their market share and profit. At the same time, competition erodes market power and monopoly profits, so banks may more tend to the risk taking, banks and the whole banking sector face greater risk. Increasing the risk of banks is likely to lead to closure of a bank failure not only have a domino effect. Bank failure may lead to other banking problems, or make the public lose confidence in the entire banking system, and will impact on other productive sectors in the economy, causing shrinkage of operations. Therefore, the study risk taking of banks becomes necessary.Recent years, a large number of finance literature trying to explain the taking of financial intermediaries and to whom the risk of qualitative control of the banking sector due to the direct relationship between risk taking and depositors the security of the entire financial system and, more importantly, the interest of shareholders and the depositors clearly conflict, the former expected to increase by a high-risk value of the stock, its price is jeopardize the interests of depositors, therefore, to study this subject has important economic and financial sense.This article is from the perspective of corporate governance to study bank risk taking. While foreign scholars studied the bank risk taking from the very early beginning, our country in recent years begun to explore the commercial banks, corporate governance issues, and researches of bank risk taking are more less. This paper attempt to explore from the perspective of corporate governance, commercial banks, the underlying principles of risk taking, identify the risk for China's commercial banks regulatory governance. The first part of the study of commercial banks, corporate governance and bank risk taking theoretical basis, the second and third part is the main thesis to study the commercial banks, corporate governance structure and mode of the relationship with the bank risk taking. The second describes some of the major commercial banks, corporate governance structure and the relationship between bank risk taking, commercial banks corporate governance structure, including ownership structure and debt structure, and this paper, the discussion of both the relationship with the bank risk taking, corporate governance structure, how they affect the decision-making which determines the banks risk taking.Part three focuses on commercial banks, corporate governance model, and its relationship with the bank risk taking. Have a larger cash flow preference shareholders the right to increase bank risk, but the ownership structure and risk taking depends on the relationship between the major shareholder of the enterprise management, investor protection, and regulatory role; right to effective legal protection of minority shareholders can be reduced concentration of ownership on bank risks; when the largest shareholder is also a wealth of human capital and the interests of private control, and efficiency are closely linked with the bank manager, the bank's risk will decline. Therefore, the internal governance model is feasible.The fourth part are about some of the major problems of our country commercial banks such as corporate governance. How to tackle this problem, put forward reasonable proposals, the last is the summary of full text.Commercial bank risk taking is a connotation of a wide range of topics, this study has done just from the perspective of corporate governance preliminary, exploratory study. By the data, time and research capacity constraints, some views may not be perfect, and even there may be bias, but in any case, this paper studies on the current risk takings of China's commercial banks to the improvement of the theoretical system still has many theoretical and practical significance.