Regulation Of The Mainland And Hong Kong Bank Comparative Study

Regulation on economy by government is always a heated topic in academic. Classical Economics before Keynes nearly disagreed with the economic regulation by government, While Keynes held that government should intervene in economy powerfully. However, there still is a huge disagreement on what range government on earth regulates the economy. In the field of finance, the dispute also exists, especially in current society where there is an ever-increasing financial innovation, bank innovation, on one hand, promotes banks to develop greatly, on the other hand, brings serious financial crisis. Under this circumstance, effective regulation in bank system in reasonable limit is drawing much attention.The theory of Bank regulation evolves from Regulation to deregulation and to re-regulation (incentive regulation), aiming mainly at establishing a bank operating system with steadiness, security and effectiveness. The article analyzes this evolvement in detail.China is now carrying out stock-system revolution of state-owned bank, aiming at bank's efficiency and international competence. For common competitive industries, property rights and competition are two common means to overcome the deficiency caused by monopoly; however, for bank with a special property structure, especially in China, where exists asymmetry of information and national monopoly, the objective can not be realized simply by means of property right and competition. For the reform practice of China's bank regulation, on one hand, state-owned monopoly causes low efficiency; on the other hand, the effect of regulation on stock-system bank or private bank differs greatly, due to difference in analytical objects, which causes much contradiction in regulation revolution. From another perspective, bank regulation in our country, begins with the purpose of preventing risk, different from western countries where the aim of regulation of bank system transferred from seeking for fair efficiency to risk prevention, while in China, the regulation of bank, at first, is intertwined with overcoming low efficiency and preventing risks.Hong Kong, as a free seaport, adopts the policy of non-intervention in economy, and HK government puts forward the bank regulation in entire accordance with inner requirement of markets, unlike the western developed countries which exerts...