Joint-stock Reform Of State-owned Commercial Banks To Explore

Banking is the core of modern economy. With China's entry into the WTO, it is the countdown to the full opening of Chinese money market to the outside. Facing with the dramatic change of the external financial environment, the reform of solely state-owned banks seems to be more urgent. Based on the actual investigation, the latest data and the real case analysis, the present paper found out the gap between solely state-owned banks and foreign banks, expounding the malpractice of solely state-owned banks. They are in an unfavorable position in terms of the capital sufficiency, earning power, business scope, revenue structure and financial creation. They are increasingly placed in a difficult position due to their loose management, low efficiency, ever increased bad assets and misplaced incentive mechanism that fail to drive the economic growth. All of these are caused by the equity structure of state-owned assets. Consequently, how to keep competitive advantages has become crucial for solely state-owned commercial banks to survive and develop, during which the joint-stock system reform can be considered the only road to be taken.The paper analyzed in depth the target and necessary conditions of the joint-stock system reform, pointing out that the reform of solely state-owned commercial banks should have a clear target and that the solution to the capital insufficiency is only the superficial reason for the reform while the deeper reason is to establish a modern commercial bank system, for which the basic requirement is to establish a distinct financial equity structure and a perfect legal person management system to ensure the success in the joint-stock system reform of solely state-owned commercial banks. The paper also further discussed the stock holding right, ownership structural arrangement, legal person system reform, corporate managerial pattern, stock integrate proportional listing, risk prevention, etc. in the process of the joint-stock reform of solely state-owned banks.The structural reform and listing brings about another important opportunity for the development of solely state-owned commercial banks, but not necessarily the expected outcome. The successful listing is greatly affected by the market environment and many other factors, but the most important effect on the listing is the management, development future and so on inside the bank itself. The solely state-owned commercial banks must make a strategic adjustment in managerial conception in order to make the reform and listing successful and always stand in an...