Investigation And Revelation Of The Hangzhou Bank Corporate Governance Historical Changes :1996-2009

Effective corporate governance is the foundation of bank's development. As the special case of banks, the development of city commercial banks becomes an advantage in domestic banking industry. However, some city commercial bank developed from urban credit cooperatives with poor corporate governance, which affected the improvement of core competence and sustainable development. Hence, studying other banks'successful experience and establishing effective governance structure become the key issue of improving the governance quality of city commercial banks.As a typical city commercial bank, the corporate governance development in Bank of Hangzhou was also a representative case in domestic city commercial banks. Taking the historical development of corporate governance in Bank of Hangzhou as an example, this dissertation studies the experiences of improving ownership structure, rationalizing the board structure, and enhancing the senior management team operations in the Bank.It also raises policy advice in the respect of how to improve the corporate governance quality of city commercial banks. In the respect of modifying ownership structures, they mainly include the following measures:lower the proportion of state shareholding be prudent in selecting private capital, and attracting strategic investors actively. The proposals in the area of rationalizing the board structure mainly include the following:Optimizing the architecture of board of directors, specifying the core responsibility of board of directors, and establishing the overall control of board of directors. The proposals in the area of senior management operations mainly include:improving the selection process of senior management and developing more effective measures to motivate and discipline the management team.