Compared with state-owned commercial banks, the institutional setup of joint-stock banks is more flexible. State-owned commercial banks are often financial institutions directly controlled by the central or local governments, and their institutional setup and business scope are often directly interfered by the government. On the other hand, joint-stock banks pay more attention to market-oriented operation, and can flexibly set up institutions according to market demand and business strategy to better meet customer needs.
Joint-stock banks are more flexible in capital operation. State-owned commercial banks are often funded by the government, and their capital mainly comes from financial allocation or government investment. Joint-stock banks can increase their capital through equity financing to attract social capital to participate, thus enhancing their capital strength. This market-oriented capital operation mode can not only bring more sources of funds for stock banks, but also introduce more market-oriented mechanisms and competition mechanisms to improve the efficiency and competitiveness of banks.
The governance structure of joint-stock banks is more scientific and standardized. The governance structure of state-owned commercial banks is often directly interfered by the government, and the decision-making power is mainly concentrated at the national level. Joint-stock banks take the general meeting of shareholders, the board of directors and the board of supervisors as the main decision-making bodies, and shareholders have more right to speak and make decisions. This shareholder governance mechanism can not only improve the transparency and sense of responsibility of banks, but also attract more social capital to participate and promote the benign development of banks.
The difference between joint-stock banks and city commercial banks lies in their business scope and development orientation. City commercial banks (hereinafter referred to as city commercial banks) are banks that provide financial services to small and medium-sized enterprises and residents in cities, and their clients are mainly urban residents and enterprises. Joint-stock banks pay more attention to market-oriented operation and comprehensive services, which not only serve urban residents and enterprises, but also participate in domestic and foreign financial markets and carry out diversified financial services. The development orientation of joint-stock banks is broader and can better meet the needs of different customers.
As an important achievement of China's banking reform, joint-stock banks have the advantages of flexible institutional setup, flexible capital operation and governance structure. Compared with state-owned commercial banks, joint-stock banks pay more attention to market-oriented operation and comprehensive services, and improve their efficiency and competitiveness by introducing social capital and market mechanisms. Compared with city commercial banks, joint-stock banks have a wider range of services and a more comprehensive development orientation. With the continuous development and reform of the banking industry in China, it is believed that joint-stock banks will continue to play an important role in the future and make greater contributions to economic and social development.