Joint-stock Reform Of State-owned Commercial Banks

The beginning of this century is the critical period of the strategic adjustment of the economic structure of our country and the realization of the grand development of the national economy. The outdated managing system and service level of state commercial banks is absolutely inadaptable of the development of market economy; meanwhile the low efficiency of bank resource collocation and the great latent venture has become the costal region and bottleneck of the quick persistent development of national economy. Our country has been a formal member of WTO, and by the end of 2006 banking will be in all-round opening to the outside, when, on the equal basis, there will be competition between state commercial banks and foreign banks , especially the advanced international banks first entering the Chinese market. The current managing conditions and reforming thinking of state commercial banks will face more severe impact and challenges. Establishing modern commercial bank system by reforming the joint-stock system is one of the main orientations of reforming state commercial banks. Presently, our state commercial banks are in the critical period. Bank of China and China Construction Bank have made outstanding achievement in the joint-stock system reforming, while Industrial and Commercial Bank of China and Agricultural Bank of China are in their active preparation for the reform. Joint-stock system reform is the realistic way out for the four state commercial banks to solve such problems as low capital quality, low rate of capital abundance, weak venture management, weak central competitive potentiality brought about by ambiguity of the property right and the faultiness in the management structure of the company. In the long term, it can improve the controlling ability, management level and service quality of state commercial banks and promote its competitive potentiality.