That is, they borrow hugely from the banks and have little capital of their own. In this context, banks are major creditors. The Principles on Corporate Governance issued by the OECD attach great importance to the role played by creditors in corporate governance, the mechanism protecting the creditors’ rights and the effective framework of liquidation.
It is very important for China’s banking sector to think carefully of their role as creditors in corporate governance. (12) Corporate governance in non-state enterprises. Last but not least, an important step forward in China’s corporate governance is that it is no longer deemed an issue solely for the restructuring of state-owned enterprises, but also an equally important topic for other non-state enterprises.