China Commercial Bank Corporate Governance Evaluation System

Since 1980s, research on corporate governance has become a hot research in global economic field. At present, research on corporate governance evaluation has become the global focus as development of corporate governance research. After the Asian financial crisis in 1997, the role of banks changed to the "governed" from the "governance", corporate governance of commercial banks were upgraded to an unprecedented importance. Corporate governance of commercial banks is that the general theory of corporate governance is applicated mainly in commercial banks. There are a lot of research on corporate governance and mechanism of commercial banks, but research on corporate governance evaluation is rarely. This paper trying to build up corporate governance evaluation system of Chinese commercial banks to improve corporate governance of Chinese commercial banks.Firstly, this paper analyzed particularity and problems of corporate governance of Chinese commercial banks, and then analysis and reference to domestic and international corporate governance evaluation system. Secondly, based on particularity of corporate governance of Chinese commercial banks, trying to build up corporate governance evaluation system of Chinese commercial banks. To prove the validity of the evaluation system, this paper selected 30 samples of five listed commercial banks, and carried the empirical research of correlation between corporate governance and bank performance. The empirical results show what exits a significant positive association between CGI and bank performance. This means that the higher the quality of corporate governance is, the better banks' performance is. Finally, the paper pointed out the shortcomings and recommendations for improvement of the research.Corporate governance evaluation of commercial banks will be beneficial to commercial banks to assess risks and prevent risks effectively. Quality of corporate governance is the key of reform of state-owned commercial banks, therefore, it is practical significance to build up corporate governance evaluation system of Chinese commercial banks. Results of this research is a promote to improve corporate governance of Chinese commercial banks.