Application Of Antitrust Law On Banking From Perspective Of The Banking Construction Regulation

Anti-monopoly law was implemented in recent years in China,the relevant law enforcement experience on specific industries is still lacking.Because banking is the core of one country's financial security,legal issues on banking anti-monopoly law enforcement are worthy of our in-depth discussion and thought.The application of anti-monopoly law is more complicated,because anti-monopoly law on many issues are principle and flexibility, and it is related to the development of the whole market and macro economic.The ultimate solution depends on the effective application mechanism.The U.S. financial crisis brought many mass concentration of banking institutions in many countries,anti-monopoly law enforcement agencies are prone to relax the anti-monopoly law enforcement.such as the concentration of banking institutions,if the concentration is likely to harm competition,but the benefits to society and consumers will offset the damage to competition,in this case the anti-monopoly law enforcement will be relaxed.For the purpose of saving the financial institutions,anti-monopoly review of the banking sector was relaxed,and also brought changes in anti-monopoly law enforcement philosophy.Therefore discussing the bank's anti-monopoly law enforcement issues is necessary.Excessive competition will harm to banking, exclude competition may lead to monopoly, so in banking there need an external force to make an appropriate competitive environment so as to maintain fair,efficient and stable in banking.This is the free competition Paradox of banking institutions.Compared to monopoly agreements and abuse of dominant market position,the monopoly arising from the concentration of banking institutions is more dangerous,because once monopoly is created,it is difficult to restore previous state, the cost of remedial measures is very high. For this reason, the United States,Europe and other countries focus on the behavior of banking institutions concentration,investing more resources to investigate and to prevention monopoly. Our law enforcement agencies should focus on effective pre-review mechanism, to improve the efficiency of anti-monopoly enforcement,to ensure the stability of our banking operations and safety.Therefore, the main line of this article is the banking construction regulation,antitrust enforcement on banking should consider some special factors about banking.By analyzing the defect of banking industry competition pattern,such as the defect of formal finance,non-formal financial development is rapid, and economies of scale and scope of China's banking industry is not economic,financial security and financial efficiency analysis,to explore the establishment of effective competition pattern in the banking sector.The structure of China's banking regulatory system should follow some principles.The basic principle of banking security, because the aim of anti-trust in banking is to protect and regulate the banking, to guarantee the stability of the banking.The principle of banking stability,because the central goal of the banking policy is to maintain the stability of the banking,in the anti-monopoly law enforcement can not ignore this principle.The principle of prudent liberalization,through the reference of"open protectionist" approach in banking in the United States, we also should made reasonable restrictions in the process of foreign bank entry.The banking structure regulation should be based on rational principles.Due to the special products that the banking provide,scientific defining therelevant market is premise of banking anti-monopoly regulation.The reason of regulating market is to maintain effective competition in banking market, and mainly through encouraging small and medium size banks to pursue economies of scale,mergers and acquisitions and specific standards for the establishment ofentities.Regulatory barriers to entry, through the establishment of private banks,and togive some restrictions on foreign mergers and acquisitios. Exit barriers control on banking should consist of handing problem banks and establishing deposit insurance system.For China's financial business,there is an issue of obsolete diversified andpremature mixed business. To prevent the more powerful monopoly created by the formation of financial holding company, financial holding companies are facing some constraints.Commercial banks lead the financial system in China,andwill directly determine the overall situation of China financial mixed business in large part.Commercial banks as the core of financial holding companies in China is not only necessary, but also realistic and feasible.Because commercial banks dominated the integrated financial business.The challenges brought by comprehensive management to the banking structure regulation are changes in the regulatory philosophy and the concept of anti-monopoly regulation.Financial holding company model is a realistic choice of China's financial industry from the diversified business towards the integrated financial business.Therefore,by foreign and regional legislation on the financial holding company's anti-monopoly regulation,from access to markets,mergers and acquisitions,financial holding companies to discuss the anti-monopoly regulation.Anti-monopoly law enforcement on banking should be completed by anti-monopoly law enforcement agencies and the banking regulatory agencies together.The coordination of anti-monopoly law enforcement agencies and financial supervision agencies played an important role in effective construction regulation for banking.Therefore,the basic conclusion of this paper is to achieve safe and efficient operation of banking,the banking business should maintain a certain modest scale, that is an oligopoly market structure for effective banking.Suggestions are both state-owned banks to shrink the size of the border,to encourage the entry of private capital banks,small and medium-scale mergers and acquisitions of banking institutions and foreign banks in the appropriate opening.At the same time there need economies of scale in banking,in order to promote the further development of China's banking industry,we should promote the integrated business model in banking. For our country, the most realistic way is to form the financial holding companies,we have some practical experience in forming financial holding companies.Meanwhile the establishment of the anti-monopoly review mechanism to avoid a possible monopoly to keep financial security and financial stability is important.