On The Privatization Of Bank Of China's Development Model Choice

At the beginning of 1980's, the trend of "privatization reform" began to prevail across western countries. Since then, the concept of "privatization" has attracted more and more attention in the field of theory research and became great focus in the practice of politics and economics development all around the world. It's obvious that the banks privatization reform plays an important role in the reform of financial scheme.In recent years, with the deepening of financial scheme reform, reform of private banks has become a hot issue in China's theoretical field. According to WTO's schedule, China will open its financial market to the world, which will be a big challenge to China's financial scheme reform and will bring development opportunities. And for the reform of private banks, it will be a turning point for our country. With the backdrop of internal and external economic situations, the paper proofs that the qualifications for Chinese banks privatization have been fulfilled.The first part of the paper introduces the meaning of private banks and bank privatization and gives theoretical analysis of economic rationality of private banks in the aspect of basic theory. As to the definition of the concepts, the paper mainly analyses the origin the meaning and the characteristics of private banks. in terms of economic rationality of private banks the paper quotes the following four basic economic theories: 1. Asymmetry of information, Debt quota and Faith cost. 2. Structure of the banking market. 3. Scheme equilibrium and Scheme disequilibrium. 4. Conversion of industrial capital to financial capitalThe second part of the paper dominantly analyzes typical cases in the reform of bank privatization in Taiwan, Mexico, Poland, Czech, and Hungary. The author of this paper chose those cases because those countries have certain similarities with China: similar internal and external economic background and similar development conditions of banking system. Thus, through analyzing the development progress and the existent issues of those three cases, the paper intends to put forward some experiences and lessons that can guide China's reform of bank privatization The third part of the paper states mostly about the current conditions of privatization reform of Chinese banks. The paper expounded the issue in both theoretical aspect and practical aspect. The paper reviews the theory development and practice of privatization reform of Chinese banks, and analyzes the competitive edge of China's private banks through demonstration.Finally, through the analyses of foreign experiences and the analyses of domestic development conditions, the paper bands them together and brings forward the development mode of reform for banks privatization under current economic conditions and makes suggestions for setting up relevant economic regulations.