The Logic of Institutional Changes and Risk Prevention of Local Banks under Local Governments Shareholding(PDF)
《南京师大学报》(社会科学版)[ISSN:1006-6977/CN:61-1281/TN]
- Issue:
- 2013年05期
- Page:
- 36-45
- Research Field:
- Publishing date:
Info
- Title:
- The Logic of Institutional Changes and Risk Prevention of Local Banks under Local Governments Shareholding
- Author(s):
- TAO Shigui
- Keywords:
- local small and mediumsized banks; institutional changes; government shareholding; risk prevention
- PACS:
- -
- DOI:
- -
- Abstract:
- Local governments invest in shares of banking institutions, which does not only blur ownership, but also forms a type of transitional ownership. Local governments capital is allowed to be invested into the banking sector, which aims to reflect the matching principle of responsibility, power and right. This, however, may lead to local banking institutions reduction to local governments “cash machines”. This will cause such consequences as: credit expands, government loans grow inappropriately, credit concentration increases, the regional gap between the rich and the poor widens, and vulnerable groups have more difficulties in obtaining loans. Only when the private banks are given fuller property rights and become the first action group, can property replacement be likely to occur, and then can the government gradually withdraw from the banks equity control field, so that private banks will become the subject of indirect financing channels, ultimately dispersing and dissolving financial risks.
Last Update: 2013-09-25