The Reform Process Of State-owned Banks In Emerging Market Countries And The Impact Of The Reform On The Banks’ Performance

Development and efficiency of the banking sector will have a significant impacton a country’s economic development entities, it’s good to improve the performanceof the banking sector in favor of providing services and support for the real economy.In the course of a country’s economic and financial development, the state-ownedcommercial banks take a dual function, namely micro-business activities to achieveprofit maximization and implement national policies at the macro execution.Therefore, the reform and development of state-owned commercial banks to boost thenational economy emerging market countries is irreplaceable. In November2013, theThird Plenary Session of the Party’s eighth adopted the "CPC Central Committee ondeepening reform of the overall number of major issues," and proposed to acceleratethe interest rate market, which will bring huge challenges of commercial banksbusiness model and profitability. Meanwhile, the New Basel Capital Accord and thedevelopment of Internet also give commercial banks the unprecedented pressure toachieve urgent need for a "second transition."Brazil is one member of the BRIC countries, and its development of thefinancial sector has undergone profound changes, while Brazil’s state-ownedcommercial banks go through a long period of reform and development to success.With the financial globalization is deepening, banking industry being increasinglycompetitive today, the Brazilian state-owned banks firmly grasp the developmentopportunities and actively respond to challenges and open up a new way to success.As the largest state-owned commercial in banks Brazil also in Latin America-theBank of Brazil went through a series of profound change, forming a uniquedevelopment philosophy and profit model, and achieved great results. Thus theexperience of the reform of the Brazilian bank owned commercial banks must have some reference and guidance on the "second transition" of China’s stated-commercialbank. In the first part of this paper describes the background and process of the reformof state-owned banks in Brazil in detail to analysis the Brazilian "Real Plan" under thecondition of the financial system;The second part of this article describes the casestudy of an object-reform process of the bank of Brazil, including the plight beforethe pre-reform and the effectiveness of" federal state bank restructuring plan" reformand reform of the content; the third part of the paper describe that the Brazilianfederal government select the different levels of banking reform and analysis theimpact of reform on the performance; In part IV, by comparing the reform of the twocountries, we analysis the advantages of the reform in Brazilian Bank,thus we canmake relevant policy recommendations for reform and development of state-ownedcommercial banks in China.