Firm corporate governance issues in China have been extensively studied since the early 1990s while corporate governance issues in Chinese banks have been ignored. To assist in filling in this gap, by using the corporate governance conceptual framework of firms, this paper carefully examines the governance problems that continue to plague the Chinese banking sector and then argues that state ownership or state concentrated ownership of Chinese banks may be the primary factor contributing to ineffective corporate governance in the Chinese banking sector. In order to solve ineffective governance problems in the Chinese banking sector, privatization may eventually be necessary
