● The security of financial assets is related to national security ● Holding shares is conducive to reflecting the will of national capital ● It has become an important economic means of macroeconomic regulation and control ● Through reform, the negative impact of the financial crisis on the world economy has been amplified and strengthened, and countries have formulated huge economic stimulus plans. A large part of the US economic stimulus plan is used for financial rescue to fill the financial black hole. At that time, US President George W. Bush adopted the way of purchasing non-performing assets of banks, but the effect was not good. Later, following the example of British Prime Minister Gordon Brown, he injected capital into commercial banks, injecting $45 billion into Citibank and $40 billion into Bank of America to buy preferred shares. Later, he took the technical measures of 19 big bank physical examination, and the unqualified bank preferred stock was converted into common stock to ensure the safety of the bank. After the share conversion, the US government's shareholding in Citibank reached 36%, making Citibank truly a state-controlled bank, which greatly shocked the United States, which is known as the "model student" of free economy. Some economists in the United States believe that nationalization is the last resort in the extraordinary period of international financial turmoil. The author believes that state-owned banks have the logic of survival, and state-controlled commercial banks have the necessity of survival. There are two kinds of state-owned banks, one is the state 100% holding commercial bank, and the other is the state-controlled commercial bank as the major shareholder. One of the biggest advantages of state-owned banks is the reputation of the country, which is also sovereign credit, which is much higher than the commercial reputation of commercial banks. The United States has been hit by the severe financial crisis, but some people still buy American treasury bonds because the economic strength of the United States is still there, and the overall strength of the real economy is very strong, making it the only superpower in the world. This is its national reputation. In the financial crisis, many banks suffered losses and eroded their capital, not to mention replenishing it. Only by selling assets can the capital adequacy ratio be improved. In the crisis, it is difficult to find a buyer. Even if it is found, the pricing of non-performing assets is still a problem. If the price is high, the buyer will not buy it; If the price is set low, the seller will quit, so the assets are not easy to sell. The issue of capital adequacy ratio will also affect the public's confidence in banks, and confidence is very important at this time. The nationalization of banks has played a great role in the intangible capital of the country. Will there be any problems with the national finance? 1When the Asian financial crisis broke out in 1997, the NPL ratios of the four major state-owned banks in China were all between 30% and 40%, and some were even higher. Drawing lessons from Asian financial crisis countries, China began to reform the state-owned banks, injecting 270 billion yuan into the four major state-owned banks through treasury bonds and establishing four major asset management companies. The state-owned banks stripped about 1.4 trillion yuan of non-performing assets from the asset management companies. In 2003, China began the shareholding system reform of state-owned banks, focusing on improving corporate governance, financial restructuring, introducing strategic investors and improving the management level of banks. Among the reform measures, one point is very crucial, that is, the state is absolutely holding. Finance is the lifeline and strategic resource of national economy and always the core of modern economy. The author believes that even after the financial crisis, the principle of absolute state holding should still be adhered to. The reasons are as follows: first, national financial security is related to national security; Second, although China's economy has made great progress in the past 30 years, the imbalance of development is obvious, and there is a big gap between the eastern, central and western regions. For the central and western regions that need financial support, some joint-stock banks are reluctant to set up a large number of branches in underdeveloped areas for profit reasons, and this financial vacuum can only be filled by state-owned banks that set up branches according to administrative regions in the past to reflect the country's capital will; Third, state-owned banks are an important means of macro-control by the central bank. For China, where the financial market is still not perfect, macro-control by means of interest rate, money supply and other tools can not fully achieve the goal. State-owned banks can play a counter-cyclical role, reducing the scale of loans to cool down when the economy is overheated. When the economic development is too cold, state-owned banks can increase loans to stimulate economic recovery, and the central bank can adopt the principle of window guidance; Fourth, state-owned banks have the function of self-strengthening. Under the influence of market competition, state-owned banks will reform themselves in order to survive and be healthy. (Dong Yuhua, Deputy General Manager of Strategic Management Department of Agricultural Bank of China)