ABSTRACT
Equity diversification characteristics of state-owned commercial banks have many positive eects on the management of banks. Finishing the shareholding system reform, as the bank’s owners, shareholders have the right to vote for the board of directors and board of supervisors members, the right to know the bank’s operating conditions, and the residual claim right. The problem of client’s absence before reform has been solved to a certain extent. The general meeting of shareholders is the highest organ of company power, shareholders entrust corporation property of the board of directors, as the legal representative of the commercial bank, the board of directors entrust the daily management right to the managers, so that incentive and restraint mechanisms between the general governance subject form in general. With the equity diversification, non state-owned shareholders balance with large state-owned shareholders, to reduce irrational behaviors of state-owned shareholder. Clear property right is advantageous to keep the state-owned asset value, to make clear of risk undertakers, also changes the soft budget constraint condition to a certain extent. The government undertakes limited liability to its investment in state-owned commercial banks, which prompts the bank managers to improve the risk prevention consciousness and responsibility consciousness. In addition, the implementation of foreign strategic investors measures also brings many positive eects for the state-owned banks, such as the balance of the state-owned shareholders, bringing the company advanced Corporate governance mechanism, products and risk management techniques.
