A Study On Restructuring Pattern Of City Commercial Banks In Guangdong Province

The city commercial bank has experienced three stages of city credit cooperatives, citycooperative banks and city commercial banks. It was set up by local governments, businessesand residents. This paper comes to the following conclusions:The city commercial banks in different areas are difference in asset scale, operatingefficiency, risk management and historical burden, so some consider cross-boundaryoperation, some still need further standardize, while others are facing out of the marketchoice, this is the original reason of recombinant. Most of the city commercial banksnon-performing loan ratio is very high, and the capital adequacy ratio is serious. Thus changethe asset quality situation in a short period of time can not be fundamentally. The only way toachieve capital adequacy rate reached8%of the rigid targets in late2006was through M&A.In other provinces and cities’ examples, there mainly are three kinds of reorganizationmodels of city commercial banks. The first model is the Huishang Bank and the JiangsuBank’ model, as the representative of the large scale, within the scope of the merger andrecombination. The features of this administrative region in the lateral reorganization modelare: government leading, participating in the merger of the city commercial bank, in businessscale, similar in the degree of risk, similar in internal management. And participated in therestructuring of the parties, the quality is not bad, but restricts the size of more prominent,strong internal requirement to the joint. The second model is based on the Bank of Shanghai,Bank of Beijing, Bank of Nanjing as the representative of the rapid development, asset size,asset quality, management are very good city commercial banks, by optimizing equitystructure, the introduction of foreign investors, take the lead in restructuring for thejoint-stock commercial banks, the regional management. The third is the Chongqing ThreeGorges bank model, for the underdeveloped area, but must have the basic operation, strongability in business, government and the banking sector policy support, the implementation ofthe reform and restructuring work still has great development potential and space of citycommercial bank has universal significance.In Guangdong, there are Bank of Guangzhou, Bank of Zhanjiang, Bank of Zhuhai andBank of Shantou four city commercial banks through reform to achieve the development andexpansion. Recombinant Guangzhou bank is the Bank of Beijing, Bank of Nanjing, with asimilar pattern, but the key to success lies in the government through capital injections andasset stripping laid the foundation for restructuring reform. The Nanyue Bank achieves a three win-win business. The Huarun bank and Huaxing bank are the same, which isdominated by government divestiture of non-performing assets, private capital asrecombinant promoters, finally realizes the name and business. The commercial banks inGuangdong are face a huge and serious risk, if the merger results directly to the market,probably because no recombination initiated and ended in failure. In the "market failure"situation, must look for the restructuring pattern of non-market orientation.The first characteristic of Guangdong commercial banks’ reorganization model is agovernment-led. The government as the controlling shareholder identity on high levels of baddebts, debt city firm capital replacement of non-performing assets, and through its owninfluence many state-owned enterprises, foreign invested enterprises, enterprises withpotential investors, the realignment of promoters, and formulate the correspondingrecombinant scheme. Secondly, we should flexibly choose restructuring promoters, especiallythat Shantou, the case of Zhuhai, although many investors have on city business license valueare interested, but the relevant policy subject to state and ministries, as well as its ownfinancial strength and recombinant determination, not all investors will become the idealrecombinant promoters. There must be needs a flexible choice of recombination from theinside, outside, breakthrough thought limitation of state-owned enterprises, privateenterprises, foreign invested enterprises.