Financial Liberalization And The Reform Of Chinese Commercial Banks

AbstractFinancial Liberalization is the embody of economic liberalism in financial field. Essentially, I think Financial Liberalization is one of the most important part of Economic Globalization. With the embedding of economic globalization, most countries in the world choose the more opening policy which open in different degree in financial field.What the early financial theory research is the role of finance in the economy. McKinnon and Shaw's financial deepening theory focused their research on the developing countries, and researched the relationship of the financial liberalization and economic growth. They thought financial liberalization and finance development quickened the speed of economic growth while financial restrain was harmful to the economic growth. From the practice of developing counties we can see that financial liberalization has advantages and disadvantages. On the one hand, it do good to the economy, on the other hand it increase financial risk. We can get some experience if we think carefully about the financial liberalization case of the South Korea and Argentina. I think that there is one of the most important lesson, that is, their microcosmic financial unit have not reformed completely in advance.It is inevitable for China to open its financial field. What we have to face is how to reform our commercial bank in short time. The commercial banks are specially important in china. We must see clearly that Chinese commercial banks are far behind their competing counterpart in such aspect: commercial bank reform drop behind economic system reform, poor operation efficiency, capital fund shortage, large bad assets, poor corporation building and information science technology. The finance opening would bring about huge influence on the Chinese commercial banks such as omnipotent bank operation, the changing service quality, the international trend, science and technology creative and network & e-business bank.How to innovate the Chinaese commercial banks? I give some advices in my paper. It includes such aspects: clearly strategic orientation, eliminating traditional official ideal, completing the innovation of property right and making it real market unit, resolving the problem of capital fund shortage and huge bad assets, strengthening corporation building, improving information technology, enhancing the core competing ability and cooperating with other banks to get win-win.