Research On Effective Bank Regulation Based On The Harmony Of Stability And Efficiency

Since the 90s of the 20th century, though government regulation has gradually tended to relaxation with the Financial Liberalization, but it never means giving-up. It is very beneficial for a government to have the needed regulations to banks from the point of view of its excessive risk-taking. But at this point the regulations need to focus on the effectiveness and the reflections to the banks.With its development, bank regulation has had a mismatching process between bank stability and bank efficiency. In the past, bank regulation usually considered bank stability and bank efficiency separately, and not paid more attentions to their harmony. We should know that the key points of regulation were not on its strictness or release, but on the effectiveness. The bank regulation based on the stability can not be thought of effectiveness, but when it is based on the integration of bank stability and bank efficiency, it could be.This paper mainly uses the comparable and regression methods to analyse bank stability, efficiency and relative theories and system of the effective bank regulation, and its important parts focus on the specific arrangement of effective bank regulation system based on the harmony of bank stability and bank efficiency. This paper indicates that there will be active effects on rising bank efficiency through Capital Adequacy Regulation and Market discipline, and respectively makes relative examinations. Meanwhile, this paper also discusses the unification of outward supervision and inward governance that effective regulation should have to the bank.