Abstract
With China’s rejoining WTO and the financial sectors open up further to the outside world , it has been one of our important task to establish a modern commercial bank system and build up banks’ competence of our country. It requires that commercial banks should promote their market competence, improve corporation governance, and optimize capital structure to embrace the challenges of market competition and foreign banks. The capital structure of commercial banks has both the fundamental characters of common company and the special characters of its own.
Under the guidance of the capital structure theory, considering the special characters of commercial banks, the paper first commonly analyzes the characters of banking capital structure. Then will analyzes the present situation of China’s commercial banks’ capital structure in detail. Last, with reference to the above analysis, puts forward the suggestions to optimize China’s commercial banks’ capital structure by two ways, namely capital structure in the bank and governance environment out of the bank.
Keywords:Chinese commercial banks; capital structure; influencing factors