The Operating Principle Of The State - Owned Commercial Banks In China

The operating principles and management methods of commercial banks are the three characteristics of safety, liquidity and profitability. Many kinds of management methods have been formed in the practice of western commercial banks surrounding the hree characteristics principle. With the reform of financial system and the development of financial business, we established our hree characteristics principle of commercial banks through the form of law in July.1995. Because of the difference on social systems, the hree characteristics principle of our commercial banks is basically identical with that of western commercial banks, and has its own characteristics. A notice concerning the improvement of loan scale management of state-owned commercial banks was issued in 1997 by the People?s bank of China. Our state-owned commercial banks hree characteristic position is not satisfying. Their assets exist serious question in safety, liquidity and profitability. These questions are relating to macro-economic and financial environment, and internal factors of operation and management. In order to implement the hree characteristic principle in the operating and management, we need to consummate external economic and 8nancial environment continuously and step by step, improve internal operating and management of state-owned commercial bank. Above all, state-owned commercial bank should carry out asset-liability ratio management actively and initiatively, and this is one of main tasks at present.