Research On The Evolution Of China’s Commercial Bank’s Ownership Since The Reform And Opening-up

Banking system is one of the most important parts of financial system, whichhelps maintain the healthy development of the national economy. While the prosperityof society and constructions of economic foundation are highly relying upon therobust of commercial banks. State owned banks, along with private banks, since thereform and opening-up are forming the premise of China’s fast moving economy andmodernization. However, with the fast transformation of China’s new economicdevelopment pattern and deepening cultural and economic system reform,various commercial banks, state-owned banks included, have encountered a lot ofproblems. Disorder of governance, low capital reserve rate, low profitability, lowefficiency, huge amount of non-performing loan are all typical problems, which if notbeen resolved promptly will seriously hurt the stability of national economy andrestrict the sustainable development of commercial banks. Therefore, research on thereform of China’s commercial bank’s ownership is extremely important, especially thehistorical division method this article used which, not only theoretically depicts theevolution of China’s commercial banks’ ownership for each period after the reformand opening-up, but practically provides some ideas and resolutions for the problemsarisen from the current development of China’s commercial banks.This article is going to research on the evolution of China’s commercial banks’ownership based on previous studies. The research will be divided into four parts:1、The formation of the secondary banking system from1979to1983. In the firstpart, we will first take a look at the development of bank industry before the reformand opening-up, summarize the formation of the secondary baking system and thenanalyze the relationship between the transit of ownership and commercial banks’performance.2、The emergence of joint-stock commercial banks from1984to1993. In thispart, we will first analyze the change of pattern when the joint-stock commercialbanks emerged, why there should be reform and the correspondent resolutions andthen we will analyze the relationship between the transit of ownership andcommercial banks’ performance.3、Marketization of commercial banks from1994to2002. In this part, we willfirst analyze the possibility of ownership optimization of commercial banks, provide resolutions and then analyze the relationship between the transit of ownership andcommercial banks’ performance.4、 Totally opening-up period in bank industry from2003to2010andoptimization of state owned bank. In this part, we will first analyze the currentsituation of commercial banks’ development, discuss the reason of the need for reformand correspondent resolutions and then analyze the relationship between the transit ofownership and commercial banks’ performance, indicate the roadmap of optimizationfor China’s commercial bank.