The Regional Comparison Of The Influence Of China’s City Commercial Bank Corporate Governance To Operation Performance

Occurred in recent years, a series of financial crisis has highlighted theimportance of commercial banks’ corporate governance. From a macro perspective,this is the key to reduce the risk of the market system and to protect the stability of thefinancial system; From a micro perspective, the current fierce market competition inChina’s banking industry is essentially the competition of the modern banking system,whose core is corporate governance mechanism for commercial banks. The furtheropening-up of financial markets to domestic banks after China’s WTO accession hasbrought opportunities and challenges in the increasingly fierce competition in thedomestic banks, it becomes more of a sense of urgency and practical significance toimprove business performance by improving the governance structure.Although the theory and practice of China’s commercial banks’ corporategovernance has made a lot of progress in the years, the relevant theoretical research isnot enough systemic in general. The construction of mechanisms also lack of long-termstability. The theory was not combined close enough with the practice, especiallycombined with China’s actual conditions, that is, China is still a developing country,whose regional economic gaps are huge and the degree of marketization is quitedifferent. This article is considered on the basis of these factors and selects sample datafrom city commercial banks around different area in order to facilitate regionalcomparisons, doing a research on the relationship between banks’ corporategovernance and their performance.The paper firstly elaborated the theory of bank corporate governance, performanceand regional differences. The interpretation and analysis of the concept and theory ofcorporate governance and bank corporate governance particularities with regionaldifferences in theory provide theoretical support for below. Secondly, we analyze thecurrent development of China city commercial banks and the operating performance ofcity commercial banks in different regions is compared, finding the existence of certain regional differences. Followed by China’s city commercial banks corporate governanceand performance evaluation system and the discussion and analysis of the evolution ofthe regional differences in China, this part provides evidence for later empiricalanalysis and policy recommendations. Again, based on the regional economicdisparities research, an empirical analysis and comparison is done on the relationshipbetween corporate governance and performance in our national’s city commercialbanks nowadays according to division of the three regions and the whole nation, andmake sure of the impact of control variable such as per capita GDP, per capita GDPgrowth and the marketization index on banks’ performance. Finally, we get the mainreason of the differences between the city banks’ operating performance in Chinabased on the empirical findings above. It is proposed policy recommendations tooptimize the corporate governance structure of China’s city commercial banks,promote the marketization process and strengthen regional cooperation so as toimprove its operating performance and promote the balanced regional development.Innovation in this article is mainly taking the consideration of regional economicdevelopment level and market level on the basis of China’s city commercial banks’governance performance comparison, investigating the impact factors morecomprehensive than any other literature and more close to the national conditions ofour country, that is there exists a big regional differences.