Employee Moral Hazard Resarch Of State-Owned Commercial Bank

Banking is an important part of the China financial system, which has an great effect on the development of the economy. The market risk, credit risk and operational risk are three main risksthe bank faces whereas the moral hazard of bank employee is the main causes of the operational risk. Although the Chinese banking reform has received great achievement, the moral hazard of Chinese State-owned commercial banks has received much close attention. The employee moral hazard has brought much loss to the State-owned commercial banks therefore we should study this problem seriously.Based on the corporate governance theory, we discourse the moral hazard in detail from its definition, classification and characters. And then we analyze the basic theory and literatures about the moral hazard of bank employee. After this, we study the status and causes of the employee moral hazard of State-owned commercial banks with the ShandongBranch of a State-owned Bank. By our study, we find that the ownership has become more and more clear, the corporate governance has become more and more soundness and the Chinese banking reform has gotten great achievement.However, the employee moral hazard of State-owned commercial banks is very serious and the employee moral hazard has caused much loss to the State-owned commercial banks. We study the problems of corporate governance in State-owned commercial banks from the internal corporate governance structure.In the end, based on our analysis and the relative studies, we propose that the State-owned commercial banks should perfect the ownership structure to improve balance extent and standard the work process of board and supervision board and should multivariate the incentive method for the executives.In the end, based on our analysis and the relative studies, we propose that the State-owned commercial banks should perfect the ownership structure to improve balance extent and standard the work process of board and supervision board and should multivariate the incentive method for the executives., by which to perfect the internal governance of State-owned commercial banks. The State-owned commercial bank should build good corporate culture to restrictthe employee behavior. What’s more, the process of decreasing employee moral hazard calls for the participation of the government. The government should improve the supervision for the State-owned commercial bank and construct the credit system to improve the credit extent of the whole society, which create a soundnessexternal environment.