China's State-controlled Commercial Banks, Corporate Governance Research

It's well known that the state-owned commercial banks are financial institutions which have the most government credit in our country. They have long not only undertaken the tasks of keeping hundreds of millions savings of urban and rural dwellers, but also been the main direct financing channel of millions of business. Depending on the government credit, it seems to many people that the state-owned commercial banks could never be at risk.With the development of economic practice, corporate governance structure has gradually become the most common global task on business management system. A series of business went bankrupt, which has been driving the point home to people that if managerial authority is separated from ownership, only the corporate institution will not be enough to well supervise the operation, and it's very necessary to build perfect corporate governance structure.It had been wholly state-funded property right model that the state-owned commercial banks had applied before joint-stock system was reformed. Applying the model, it was very difficult for the state-owned commercial banks not to be interfered by the government department. And creditor's right-debt relation was not clear: the state-owned commercial banks as the creditor and the enterprise as the debtor were both actually owned by the state, consequently they failed to form true debtor-creditor relation or financial transaction relation, and caused a large number of non-performing assets(NPAs). So it's really urgent to build a kind of corporate governance system in which property confining relations is used as the criteria of target behaviors of the client and the deputy.Since 1980s, bank problems and more serious financial crisis have risen one after another, which make the issue of commercial banks corporate governance being paid more and more attention, and Asia financial crisis which happened several years further added to people's understanding of the issue. "Strengthen Bank System Corporate Governance", the Basel committee issued in 1999 made commercial bank corporate governance become a global task, at the same time, become what the theory circle and the financial circle focus on.