Banking Supervision Organization Structure

The research of the organizational structure of banking regulation is a rather new research fields. The main accademic concern about this fields begain with the pioneering reseach work of Goodhart et al. in 1995. Based on the angle of the organizational structure, this dissertation systematically explores the banking regulation problem. Through exploring and carding the basic theory ,histoncal changes and regulation modes of the organizational structure of banking regulation, the dissertation figured out the suggestions of establishing an appropriate organizational structure of banking regulation according to each countries own characteristics. It also centered on the relationship between banking regulatory organization structure and the central bank. Furthermore it discusses and expounds upon the issues and trends of unified regulation both theoretically and practically. On the basis of all these analyses, the dissertation comes up with the ways and policy orientation of establishing and perfecting the organizational structure of banking regulation in China.It is claimed in the dissertation that whether or not it needs to establish an independent banking regulatory institution outside the central bank depends on the degree of separation and connection between the functions of the monetary policy and of the banking regulation of the central bank. If the cost of confliction surpasses the benefit of keeping the two functions in the central bank, then the banking regulatory function must be separated from the central bank, thus it's very necessary to establish an independent banking regulatory institution. It is believed that the degree of the separation of the two functions is mainly influenced by the factors of financial innovation and the tendency of business amalgamation of financial institution. The key factor lies in the necessity of a unified regulation under the condition of financial innovation and business amalgamation. So this dissertation further discusses the structural selection of banking regulatory institution from the perspective of the relation between banking regulatory institution and other financial regulatory institutions. It puts forward the hypothesis that a unified regulation mode will gradually substitute the separate regulation mode, which is currently practiced in many countries and that irrespective of other external factors, the unified regulation will become a tendency of the future banking regulatory organization. It also points out that once a country takes the unified regulation mode, the banking regulatory institution must be established independently of the central bank.The dissertation also discusses how to establish a kind of coordinationmechanism between the central bank and banking regulatory institution when the function of banking regulation is separated from the central bank. It points out that the key factor is to establish a connection between the two institutions with respect to mutual communication, information sharing and coordinated actions. The important orientation is to insure the safety and efficiency of the banking system which needs the coordination of the two institutions in safe evaluation mechanism, control index system and financial safety net.From the above discussion, the dissertation has made some conclusions, which are used to analyze how to establish and perfect the organizational structure of banking regulation in China. It points out that it is necessary to strengthen the banking regulation of China. It also makes some further exploration about the significance of the establishment of China Banking Regulatory Commission (CBRC). Most important of all, it points out that the establishment of CBRC is the beginning of the further reform in banking regulatory institution. The future developmental tendency is to establish a unified financial regulatory system, and the current attention should be paid to the issue about how to realize the coordination between CBRC and the Peoples Bank of China so as to insure the financial stab...