Corporate governance has been defined by different researchers in different ways. Julia (1998) defined corporate governance as the composition of a general meeting, the board of directors in a company, board meeting, independency meeting, frequency elections and board composition in an entity. The Organization of Economic Corporation and development (2011) provides that, corporate governance purposely focuses on the ways that interested parties in wellbeing of a firm ensure managers and insiders take appropriate measures or they are able to adopt systems that safeguard the interests of the stakeholders.Corporate governance in China received significant attention as China moved from a planned economy to a market economy (oecd.org, 2011, p. 13). The development and growth of China’s capital market and evolution of entities in China from being government affiliates to become modern companies have made it necessary in establishing a new corporate governance framework. The banking industry is one of the industries that were greatly affected by their affiliation by the government since the banks were all state-owned.