山西票号的创新与启示(英文)

Innovation and Enlightenment of Shanxi Bank

Shanxi Bank was set up in the early 1920s，which existed a century in the history of China's financial.Shanxi bank not only provided a safe and convenient way for currency circulation,but also boosted the development of the economy at that time.Although Shanxi bank declined In the end,the experience of its success worthed learning and the lesson of its decline make us ponder.

Shanxi Bank have made indelible contributions to the China financial innovation.

First,the circulation of money rely mainly on transporting protected by escort before the appearance of Shanxi Bank,which was expensive and dangerous. After the Shanxi Bank built up,it widely pursued exchange industry for the service of cash transfers in commercial activities,which was convenient and safe.

Second, one of the biggest limitations of the financial industry was implementation of a single system,which also was the reason of exchange industry hadn’t been carried out for a long time. Depending on the advantages of branch set up in more than two cities,Shanxi Bank implemented the system that distinguishing the headquarters and branch in the financial industry.At the same time of carrying out the exchange business,Shanxi Bank spreaded its scope of business to the whole China by the way of setting up branches in

different place.

Third,Shanxi Bank implemented joint-stock system that including bank share and personal share in the determination of property.Bank share referred to the shares of investment moneybags and personal share referred to labor share that only the output ,not money,but having the right of dividend as bank share after getting profit.Because of their own interests linking with the interests of enterprise,the managers and employees would naturally eliminate the risk in the process of searching profit.So the labor-sharing system was complete and advanced at that time.

Shanxi Bank declined eventually because of a lot of reasons,which the most important was that there was a limitation couldn’t b e overcome in the system.

First of all,Shanxi Bank generally adopted the unlimited liability system,which was one of the main cause for its decline. The implementation of the unlimited liability system mean that the capitalists with all its possessions guaranteed the draft bank debt. Once the insolvent, capitalists likely became poor, can not stood up, which made its anti risk ability weak.

Secondly,Shanxi Bank didn’t formed more scientific and reasonable banks' internal power balance mechanism. Responsibility system of manager is a kind of system of giving full play to the