Impact On State Sovereignty By Legal Regulations Of Transnational Banks

Transnational Banks(TNBs) belong to special type of transnational corporations(or multinational enterprises,MNEs).TNBs are playing an important role during the process of financial globalization. The safety and stability of the finance structure mainly depends on the quality of banks.Under the background of financial globalization and frequent international financial crisis,the research on legal regulation of TNBs will undoubtedly constitutes some kind of practical significance,and state sovereignty has giving preference to financial sovereignty.With the highlights of the importance of financial sovereignty,the law is undoubtedly an important tool to safeguard the state sovereignty. Especailly under the wave of financial globalization,the safeguard of the financial sovereignty of developing countries remains great significance.This dissertation is using the research method of comparative analysis,historical analysis,case studies and other relevant research methods,discussing the TNBs legal regulations and their impact on the financial stability and safety,as well as the state sovereignty(mainly financial sovereignty) of developed countries and that of the developing countries.The legal regulations of TNBs are mainly including the Agreement of the International Monetary Fund,Agreement of International Bank for Reconstruction and Development,Basle Framework of Basle Committee on Banking Supervision,Anti-Money-Laundering Regulations of the OECD,WTO Financial Services Agreement,European Union legislations on banking section,The North American Free Trade Agreement(NAFTA) and "ASEAN financial cooperation agreement",etc.The current legal regulation of TNBs allows the expansion of state sovereignty of developed countries and the suppression of financial sovereignty of developing countries.This is an important symbol of the old international order.The Author of this paper therefore proposed that the international community should attach great attention to the safeguarding of financial sovereignty and improve legal regulation of TNBs to cope with the international financial crisis actively.Through research,this paper argues that developing countries,especially China should improve their domestic banking legal system and actively take part in the international financial administration to better safeguard the state sovereignty.