Commercial Banks To Participate In The Study Of Corporate Governance

Through observation of corporate governance in different countries, we focus on two typical corporate governance models based on finance. One is market-dominated model (outside control), take England and America for instance. The other is bank-dominated model (inside control), such as Germany and Japan. Corporate governance is not only the business of the firm's shareholders, but also influences the interests of the extensive stakeholders, especially the firm's biggest creditor-bank. It is necessary for the bank to participate in corporate governance, possible as well. Different countries have the different practices and regulations on this topic. In Germany and Japan, the bank participates in corporate governance actively in name of both firm's shareholder and creditor. The supervision of shareholder's and creditor's rights owned by the bank may restrict the firm's manager effectively, at the same time may safeguard the interests of the bank to the great extent. On the contrary, American bank merely acts as the creditor of the firm to realize the participation in corporate governance. Obviously, only the creditor's right intervention might cause that American bank participate in corporate governance comparatively weakly. Chinese commercial bank also participate in corporate governance to some extent, however, it is mainly passive participation and still exist some problems in practice. In the economic globlization, it is of great point for the commercial bank in strengthening participating in corporate governance (especially active participation), accordingly it will set up positive bank-enterprise relationship and improve Chinese corporate governance as well. Therefore, this thesis believes that as the owner of state commercial bank, Chinese government should not only push the system-transformation process greatly, but also guarantee the function of commercial bank in the process of the participation in corporate governance in the sense of specific system and regulation. At the moment, there are two stages we may follow. The first stage is that as the main creditor of the firm, the commercial bank may participate in corporate governance in the "creditor's right model". After accomplishment of various kinds of reform measures, we can reach the second stage, that is "shareholders model". Specifically speaking, the commercial bank holds the firm's share directly or indirectly to participate in corporate governance in name of the firm's shareholder. Finally, this thesis puts forward some legal suggestions for the commercial bank on how to strengthen the function in participating in corporate governance.