State-owned Commercial Bank Corporate Governance Structure

After the middle of 1990s, with the coming of financial integration, many banks in the world got into trouble. In 1997, an acute financial crisis occurred in SE Asia, evoking an attention should be pay to corporate governance for banking organizations. After that, experts came to realize that a steady and effective banking system is closely related to perfect corporate governance structure for banking organizations. From then on, the corporate governance structure for banking organizations became a hot topic among the experts and scholars.State-owned commercial banks(SCBs)are the backbone of China' s financial system. The perfectness of the corporate governance structure of SCBs has a direct effect upon asset quality and operating efficiency as well as the stability and efficiency of the whole financial system, because the corporate governance structure is the hinge of modern enterprise system. In view of many problems SCBs face, and hot competition with foreign banks for world market, so it' s an urgent Problem to be solved in the reform of SCBs that the corporate governance structure needs to be standardized. As a result, the research on corporate governance structure for SCBs is of great importance both in theory and in practice.The article totally consists of five parts, and the main contents are set forth as the followings:The first one is the exordium, introducing the reason for the study, the research methods and train of thought, and the structure of the thesis. The second part introduces related conceptions of corporate governance structure of SCBs. Firstly, expatiates upon general corporate governance structure and its basic contents. Secondly, the corporate governance structure of SCBs, as special companies, is explained based on general corporate governance structure introduction. Then, a comparative analysis on two worldwide corporate governance structure modes is made. Finally, it is briefly introduced for current research and practice of corporate governance structure for CBs. The third part analyzes the shortcomings and reasons of the corporate governance structure of SCBs. Firstly put is the looking back of the SCBs' reform, followed by the comments on so many defects from the two angles of inner corporate governance structure of SCBs and exterior ones. Afterwards, the particularities of the corporategovernance structure of SCBs, which should be taken into consideration when making perfect the corporate governance are discussed. The fourth part puts forward suggestions to construct effective corporate governance structure for SCBs. Considering the particularities of the corporate governance structure of SCBs and the fact that it is a special transiting period for China to shift from planned economy to market one, the reform will definitely affect the national financial system, financial market and the socialism market economy as a whole. So, steps should be taken gradually to promote the reform. Firstly, making perfect the corporate governance on the basis of micro-environment of the whole society. Secondly, laying emphases on the perfectness of inner corporate governance structure. Thirdly, building outer corporate governance structure with the development of reform on stock sharing system. Finally reforms such as reinforcing custody of banks, and building effective deposit insurance system should be followed. The last part is the conclusion.