Improve The Corporate Governance Of China's State-owned Commercial Banks

Finance is the core of the modern economy, and the banking is the main part of the finance development. Bank of China (BOC), Industry and Commerce Bank of China (ICBC), Agriculture Bank of China (ABC) and China Construction Bank (CCB), the "big four" state-owned commercial banks play a key role in Chinese financial field and national economy. Their management level affects our country finance security.The reform and opening of Chinese economy started from over 20 ago, state-owned commercial banks have carried out a series of the commercial bank character reformation for many years. However, these reform is technology tier, do not touch to deep-seated problems such as bank owner structure, the corporate governances and the framework of organizations. With the development of economic system reform, the state-owned commercial banks are found out a lot of problems, especially the problem of corporate governances. If we do not reinforce state-owned commercial banks corporate governances and improve theirs competitiveness, our economy and society will be affected. At the same time, financial security of the country will be endangered, if not reinforcing the, only be capable to do the bring adverse effect to adverse effect economy and society , possible meeting endangering the . 2006 ends of the year, According to the regulations of World Trade Organization, financial market of our country have opened to the foreignbanks at the end of 2006. Chinese banking enters a new competition environment. In this new environment of competition, the traditional advantages of state-owned commercial banks are momentary. Compared with foreign banks advantages such as institutional advantages, financial advantages, strengths and business advantages, the State-owned commercial banks in the problem of corporate governance aspects has become the main factor which constrains their core competitiveness and growth. State-owned commercial banks have to accelerate the improvement of their corporate governances in order to ensure its survival and sustainable development. In this dissertation, the author analysis state-owned commercial banks corporate governance, and propose some suggestion about how to perfect state-owned commercial banks improve corporate governance.The dissertation is divided into five parts, as follows:Part I: A Theoretical Review. The domestic and foreign scholars on the concept of corporate governance and corporate governance theory reviewed.Part II: Corporate Governance of Commercial Banks in general analysis. The dissertation takes note of necessity and specificity of commercial banks corporate governance. The dissertation studies two models of corporate governance which are Anglo-American model and the German-Japanese model.Part III: China's state-owned commercial banks reform process and the main problems. Currently, the Bank of China, China Construction Bank andIndustry and Commerce Bank of China have Joint-stock reform successfully. But China's state-owned commercial banks still exist the problem which operational efficiency is not high.Part IV: Analysis the reasons for the low efficiency. The reason is mainly that internal corporate governance is imperfect, such as property is not clear, the owner becomes vacant. At the same time, External governance mechanisms do not perfect.Part V: state-owned commercial banks improve corporate governance path. The main path is to perfect internal corporate governance, such as stock reform and improvement of incentive and restrictive mechanism. At the same time, it needs to perfect external governance, such as improve Capital markets, products and external market supervision mechanism.