Analysis On The Corporate Governance Mechanism Of Z Rural Commercial Bank

China's rural commercial banks have been transformed from rural credit cooperatives or rural cooperative banks,but most banks still retain the management system of the provincial associations in terms of governance structure.That is,the provincial association has basically no investment in capital,but it manages all aspects of the bank.This system was established in the early stage of the reform to establish a professional management system within rural commercial banks,but it is increasingly incompatible with the needs of market development.It not only does not meet the basic requirements of corporate governance,but also leads to a series of agency problems.It is far from the goal of the country to establish a relationship between rural commercial banks and establish a clear relationship of property rights and improve the governance structure.First of all,based on the introduction,this paper reviews the theory of corporate governance.Secondly,it makes a statement and analysis on the development process and current situation of the rural commercial banks involved in the research topic,and introduces the establishment and influence of the provincial associations.Thirdly,taking Z Rural Commercial Bank as an example,it briefly describes its establishment process and corporate governance objectives,and gives a detailed statement on the corporate governance and business status.Finally,with the provincial association as a unique perspective,using the theory introduced in the second chapter,the internal situation of Z rural commercial banks is analyzed in depth.It was found that the provincial associations invaded the internal governance of Z rural commercial banks through implicit personnel arrangements and leading incentive and restraint mechanisms,which far exceeded the external governance role of industry management.The executive directors,senior management and supervisors of the Provincial Association and its entrusted arrangements are vested interests under the old industry management system.They are in the same interests chain and form a vested interest group,which eventually leads to the chaotic operation of the internal governance mechanism of rural commercial banks.As an industry management organization,the provincial association has a serious administrative tendency and has limited supervision.At the same time,it has caused obstacles to external administrative supervision.As a result,the external governance mechanism of rural commercial banks has not operated smoothly.In view of the above problems,this paper proposes the enlightenment and suggestions for improving the corporate governance of rural commercial banks from six aspects: promoting rural financial reform,enhancing shareholder rights awareness,transforming the functions of provincial associations,adjusting regulatory policies,improving internal management and cultivating good corporate culture.