City Commercial Bank Corporate Governance Research

City commercial banks were special in finance system in China. City commercial banks were founded on the bases of restructuring city credit cooperatives from 1995. City commercial banks achieved progress from doing with risk and guaranteeing payment to administration normative and management stably in ten years. Contract with business developed, corporate governance of city commercial banks was fallen behind and to be restriction for further development. Some city commercial banks explored the method of corporate governance by shareholding of abroad funds, absorbing fund from the public and cooperating with different regions. At the same time, supervision of bank was explored the way of corporate governance in the progress of formulating supervision policy. It is necessary to perfecting corporate governance to meet the need of developing city commercial banks and department of bank supervision.The study analysis the peculiarity of company administration of city commercial banks on the base of corporate governance theory, and pay more attention to the peculiarity in the goal of company administration, risk controlling, level of market competing, effective supervision and so on. City commercial banks choose such mode of corporate governance on considering relevant person's benefit such as creditor, government, debtor and community, not only that of the shareholder. Corporate governance emphasized the value maximized, and at the same time stressed the security and stability. By analysis the theory of most lofty shareholder and relevant person's benefit, the study constituted the frame of corporate governance of city commercial banks, and explored the peculiarity and problems of corporate governance of city commercial banks, and attempted to complete the methods of corporate governance, such as optimizing the shareholder's structure, producing mechanism of stimulating and restriction for the manager, strengthening the Board Governance and the Directory's function, and strengthening information disclosure and so on. According to the difference of environment and improved stage of city commercial banks, city commercial banks adopted measures suiting local conditions to establish shareholder's structure.