Order Logic And The Development Of The West Bank

The initial reform in the West is smoothly guided into the path of gradual transition with the support of dominant state-owned banks. However, the low efficient allocation of financial resources is deemed to be unsustainable. The major experience of increment improving state-owned sector in China's reform indicates the reform of the banking in the West can be carried out with the entry of the joint-stock banks and admittance of civilian banks, so as to form efficient competition and solve small-and-medium-sized enterprises (SMEs) financing problem under the current banking system. Taking the economic initial condition in the West as the logical start, the paper first discusses the property right and cooperation governance structure of the joint-stock banks and analyses its market competitive performance in the West. The paper next explores the SMEs financing problems and risk factor of the civilian bank's admittance as well as the development and reform of the small-and-medium-sized banks (including city commercial bank and credit cooperation). The paper find out that the path of the increment improving the state-owned sector will add potential risks rather than enhancing efficiency for the regional financial system, and concludes that the state-owned sector should be reformed firstly. It means the existed small-and-medium-sized banks should take the lead in privatization, so as to form all-sized banking structure with the feature of diversified property right. Therefore the logic and consequence of the banking development in the West is the reform of the state-owned sector improving the increment, which will pave the way for the financial deepening in the future.Xian Wen (National Economic Management) Directed by: Chen Xinmin...