Research On Foreign Bank Accession And Supervision Framework In The US

Banking sector open to the outside world is an organic part of China’s basic state policy of reform and opening-up, is the objective requirement of the Chinese economy increasingly integrated into the world economy. It is also an important way to promote China banking’s reforming and improve overall competitiveness of them. Historical experience shows that only opening to outside world then can obtain the larger development.The United States financial market is the largest, the most open, and the most competitive market and its regulatory opening up approaches is a significance reference to China. From the historical view, the paper made a research of United States’ banking sector and regulatory, according to the stages of developments. A comprehensive analysis have covered each stage of United States banking evolution, including the effects of foreign banking institutions made to market, and the United States regulators’ responds. Meanwhile, the paper has made a brief introduction of the history of Chinese banks’ accession of U.S. market, present situation, and chanlleges, in order to make suggestions of Chinese banks’ OFDI to United States.The main conclusion of this paper is as follows:First of all, he US banking sector is highly opening up, and is basicly providing national treatment to foreign banks. The paper made a comprehensive analysis of accesss commitments, regulatory system, and the forms of organization, procedure of approval, supervisory focus, supervisory powers and remedies. The accession commitments of U.S. are based on princinpals of GATS, and the national treatment of WTO. The U.S. banking market is highly opening, and there are only few restrictions on foreign banks.Secondly, in the process of opening up, the United States has formed a comprehensive supervision system of foreign banks. From the International Banking Act of 1978, to the Final rule of 2014, the regulatory system experienced from Laissez faire, enhanced controls and strict control periods. The previous regulatory adjustments are responses to the foreign banks’ impact on the domestic market. Since 1978, U.S. supervision legislations got more frequently, with more accurate policy objects. In addition to the banking supervision institutions, the Ministry of finance, the National Security Agency, the National Audit Office and the Securities and Exchange Commission and other departments also actively participated in the supervision and regulation of foreign banks. The U.S. banking supervision departments also actively seek in cooperation with their foreign counterparts, in order to establish an international risk management mechanism. In addition, the important goals of foreign bank supervision of United States are to safeguard the fair competition of the business environment and protect the domestic banking industry from the outside impact. This regulatory philosophy has been resolutely implemented by the related departments.At last, under the background of deepen financial system reform in China and growth of Chinese investing to the United States, the Chinese banks are ushering into a period of rapid growth entering U.S. financial market. In 2008, U.S. financial sector suffered unprecedented impact from the financial crisis, and the regulatory authorities start to loose its grip on Chinese banks entry. At present, the scale of China banking is huge and the competitiveness is continuously enhancing which is capable to enter foreign market. As the Chinese companies gradually increase direct investment in the United States, Chinese banks find new market opportunities.