China’s Listed Commercial Banks’ Governance Efficiency And Its Influencing Factor

With the development of society and economy, the commercial banks’ function includingproviding financial services, credit creation, economic regulation, credit intermediation andpayment functions, is increasingly important in the global financial system. Commercialbanks have been the most important trading intermediary and financing institutions, in a goodpart of the world’s financial system, play a fundamental and indispensable role.Along with the development of the global wave of economic liberalization andintegration, and commercial banks growing from strength to strength, competitive pressure isincreasing among commercial banks. Improving governance of China’s commercial bankslisted by the way of restructuring the form of listed has limited results. The scale effect ofeconomic growth and the monopoly status of the banking sector, and the state of our country’scurrency interest rate controls increase the bank’s performance to some extent. But themechanism of governance and governance of listed commercial banks’ efficiency comparedwith the international advanced commercial banks can be relatively backward. Facing withmultiple oligopolistic market competition and major changes in the interest rate market, thelisted commercial banks need to further improve the corporate governance mechanisms toimprove operational efficiency, so that competitiveness can be improved. Therefore, to theefficiency of the governance of listed commercial banks as well as analysis of influencingfactors for China’s listed commercial banks is an important theoretical and practicalsignificance.This paper based finance, management theory. First of all, the study analyzed theaffected factors which from the commercial banks’ internal governance structure. Secondly,the study from four aspects including the bank’s ownership structure, board governance, boardof supervisors and senior management incentive analyze the status and characteristics ofChina’s listed commercial banks’ governance. Again, the use of standardized research methodology combines empirical research, building evaluation system of the governanceefficiency of commercial banks, and the study pick the Bank of China’s16listed commercialas samples to empirical research, analyzing the influencing factors of China’s listedcommercial banks’ governance efficiency. Finally, the study summarizes the results ofempirical research, and put forward four corresponding countermeasures and suggestions inorder to provide reference for improving corporate governance of listed commercial banksfrom the ownership structure, board governance, board of supervisors and senior managementincentive.This article concludes: state-owned equity to risk control and profitability of listedcommercial banks played a bank inhibition, but help strengthen the liquidity of the bank’sability to control. Because of China’s banking industry is still not perfect, so the ratio is notvery relevant for the number and size of the bank’s board of directors and the independentdirectors to the banks’ management efficiency. The size of the Supervisory Board has positiveimpact on the increase or decrease of the bank’s risk control ability, and has negative impactof the bank liquidity, but the size of the Supervisory Board and the bank’s profitability is notcorrelated. There is no correlation between remuneration of executives and the ability tocontrol risk and profitability of listed commercial banks. There is negative correlationbetween remuneration of executives and the banks’ ability to control the liquidity.