Analysis Of State-owned Commercial Bank Reform

After more than twenty years' reform, state-owned commercial banks have developed a lot. But they still suffer from non-performing loans, low capital abundance and bad pay-off level. According to our acceptance when entering WTO, national treatment will be given to foreign banks in 2006. At that time, foreign banks will impose great challenge on our banks by right of their superiority. So it is imperative to improve competition power for surviving and developing. Through the theory, reasoning and evidence, this paper demonstrates that shareholding reform is the best way to resolve problems and to modernize our state-owned commercial banks. In addition, it explores measures on how to reform completely and deeply based on reform and development.