Research On Governance Structure For China’s Policy Banks

Our country established three policy banks in1994, the strong position ofvulnerable groups are changing along with the development of market economy in China,policy banks tend to compete with commercial banks for business, and all countriesrequire sustainable development with policy banks. In order to satisfy the government’ssocial and economic policy intentions, policy banks act as a tool on developing,regulating and managing the macro-economy, it is necessary to improve governancestructure of China’s policy banks, It can implement the effective supervision andmanagement, strengthen the internal control mechanism and external supervision andrestraint, promote the sustainable development for policy banks.This paper discusses the perfection of governance structure on China’s policy banks,On the basis of the policy bank’s particularity research, combined with the historicaldevelopment of governance structure of China’s policy banks, drawing on thecharacteristics of governance structure on the foreign policy banks. This article strives todesign a set of governance structure which will be targeted, rational and maneuverable.And this paper contains four parts apart from the foreword.The first part discuss the general theory of the governance structure in the first, thenuse method of comparative analysis compare governance objectives, the structure ofproperty rights, balance mechanics and external supervision between policy bank andcommercial bank, in order to put forward the particularity of policy banks’ governancestructure.The second part is the key section of this paper. In first, we introduce theinstitutional change of governance structure of China’s policy banks, and then we havethe development process of the governance structure of China’s policy banks, whichbased on the historical analysis. Secondly, we analyze the problems of governancestructure of China’s policy banks, there are four main issues. Finally, this paper expoundsconsequences that caused by the alienation with the governance structure of policy banks,which according to the problems in appearing.The third part mainly compares of governance structure of the policy banks in international. This paper comes to the revelation for the governance structure of China’spolicy banks. Though comparing property right structure checks and balancesmechanism, the incentive constraint mechanism, and the board of supervisor. Then weshould strengthen the external governance mechanism, the mainly part is regulatory.Finally, we need some guarantee with system.The forth part put forward some advices for perfecting governance structure ofChina’s policy banks. Based on the above analysis, we think that our country should firstimprove the internal governance framework, which are the council and the board ofsupervisor. Then we should strengthen the external governance mechanism, the mainlypart is regulatory. Finally, we need some guarantee with system.