Relationship Between Commercial Banks' Internal Governance And Performance

Several financial crises in the1990s and the beginning of2008by the UnitedStates and the global financial crisis has issued a warning to the people, the importanceof the financial sector under its enormous destructive power gradually revealed, peoplehave started to improve the commercial banks degree of attention the importance ofcorporate governance. At the same time, the relationship between corporate governanceof commercial banks has also undergone some changes: Contact theorists began tofocus on commercial banking soundness of its own corporate governance, and generalcorporate governance in the past to apply theory to analyze the research ideas ofcorporate governance problems of commercial banks questioned. In the modernfinancial industry, commercial banks are the most important aspect of its extensiveexternal characteristics of the smooth running of a country’s economy plays a verycrucial role. Due to the special nature of the commercial banks, the role of externalgovernance mechanisms difficult well reflected in commercial banks out of commercialbanks rely mainly on internal governance mechanisms of governance, internalgovernance mechanisms operating condition is directly related to the quality of itsperformance and anti-control, the ability to resist risks, and therefore the relationshipbetween research and commercial banks’ internal governance mechanisms between theperformance of great significance.In the corporate governance literature prior to the mid-90s of last century, thecommercial banks mainly in two forms: in theory, the commercial banks as creditorsappeared as an important force to participate in the general oversight of corporategovernance; in empirical research, mainly using data banks, the effect of corporategovernance on the empirical study. These studies assume that commercial banks canapply to general corporate governance framework, and for specific corporategovernance of commercial banks to explore and study the very scarce. However, due tothe commercial banks has its unique particularity, commercial banks can not simplyapply the corporate governance and general corporate governance model: one is due tothe limited nature of its external governance mechanism of action, partly because ofinternal governance mechanisms there are some differences in the ways and means toplay a role. In addition, commercial banks performance evaluation methods should alsobe considered in a targeted manner, rather than simply the use of financial indicators.In this paper, reading relevant literature, based on the use of empirical research phase, proceed from the internal governance mechanisms of the four main elements, theinfluence of internal governance mechanisms of the four elements of commercial bankperformance. Read the relevant theoretical literature at home and abroad to helpunderstand the basic relationship between them and the deep-seated internal relations,and the use of empirical research methods are actually tested the relationship betweenthe two.As of this writing, although some innovation, but because of the subjective andobjective reasons for making this paper, there are still many deficiencies places: on theone hand, due to its capacity constraints, some errors may occur even with the help ofteachers and students under; another On the one hand, while the selected sample ofbanks covered by state-owned commercial banks, national joint-stock commercialbanks and city commercial banks where these three categories, but because there are notmany listed commercial banks, so the sample data may have some deficiencies, so thatit does not have an absolute representation, which could make the empirical resultsvary with other similar studies.