Study Of State-owned Commercial Banks Reform Of Property Rights

The financial system reform is a long-term and complicated process. In this process, the overall financial system is experiencing a prolonged and profound transformation. State-owned banks, the once main element of China's financial system, have long been duty-bound to take the role as financial supporter in China's progressive reform even at the cost of their own efficiency and profit. However, this kind of balance is, after all, transient. Along with the penetration of reform, the change of the economic growth pattern, the development of other commercial banks and the entrance of foreign banks, competition has become more and more intensive and cruel. At the same time, the sacrifice of efficiency and profit becomes increasingly unacceptable to the state-owned banks, whose reform is underway.The reform of state-owned banks is also a process of deepening recognition. Because the reform relates to many other factors in the macro-economy, the progress of reform is inevitably confined. However, the reform is going steady and thorough. Specifically speaking, if the defects of state-owned banks is regarded as result, the property rights system of state-owned banks would be the reason. Just based on this rationale, the reform of the property rights system has made up the main clue for state-owned banks' reform. From this point of view the thesis aims to describe a complete picture of this clue and outline the theory basis of its movement through method of system transformation analysis.The paper is divided into four parts. The first part is introduction. The second part is about the theoretical basis for state-owned banks' property rights system transformation and a number of role positioning. The third part is the reform of state-owned banks' property rights system and practical choices. The last part deals with measures to push the reform of state-owned banks' property rights system.The first part, the introduction, concerns with theoretical hypotheses and definitions which, in the context of this paper, is necessary. Because the theme of this thesis is controversial, this thesis makes use of system economics method and Zhangjie's relative views to establish its own analytical framework.The second part gives theoretical explanations on the transformation of state-owned banks' property rights system and offers some analytical formula. Based on this framework, this part explains further the roles of state and local governments in reform processes.The third part evaluates the existing property rights system, points out its inherent defects, hence proves the necessity for reform and, by analyzing the reform path and comparing the feasibility of reform plans, reaches the conclusion that stock company is the appropriate mechanism for the realization of property rights system reform for state-owned banks.The last part looks into the prospect of future reform and gives policy suggestions with some primary assumptions about the targeted structure. In its end, from the perspective of competition, this part explains the special effect of other commercial banks by using the beyond property-right theory.