The System And Structural Model Of The Banking Regulation And Supervision In Germany

Finance is the center of modern economics. The inherent frangibility of financial system creates inherent instability and great risks in financial system. From history to present, people enjoy the welfare of finance, while they have been feeling the loss of financial crisis. Among the various financial institutions, bank is the most basic and important, which causes the financial risks most easily in all of them. After 1980, world economy integration and finance globalization make bank operation and managing ideas, managing means and risk control etc. change unforeseen. At the same time, these sudden changes bring on unforeseen turbulence and crisis to banking with original banking risks. During 1980-1996, serious problems and financial crisis had taken place in 130 countries banking among all the 180 member countries of IMF.Since 1930s, the banking has been one of economic administrative departments most strictly regulated in the market economy countries all the time. Even in the background that economic liberalization ideological trend and various countries economic laissez faire policy generally had been implemented in the evening of 1970s, banking have been advancing along control- relaxed management- control again orbit. Especially since Asian financial crisis, the financial supervision of various countries has been generally strengthened. It related not only with the progress of supervisory technology, but also structural disjoin-combine of supervisory system. The governments of various countries, in order to guarantee the steady operation of the banking system and the stability and social economy and finance, set about to improving supervision and perfecting the financial safety network. They hope to correct the market failure, optimize resource distribution, coordinate the interests of social members and promote the social welfare through supervising bank effectively.The banking regulation of Germany should be regarded as a good example all over the world. Although the German banking is always the universal banking, that is to say, the traditional banking and investment banking can be operated under a same entity without strict firewall, there is no severe banking crisis or general financial crisis. Therefore, this dissertation sets about from the German banking regulation system and the structural pattern in order to give some advices for the Chinese banking regulation. Aiming at the object of banking regulation system and structural pattern, this article divides into 6 chapters.Chapter 1 is the Preface.Chapter 2 is Comparing Financial System. This chapter, which focuses on the German financial system, analyzes the German bank-dominated financial system with the researching method of institution and system. Comparing to this, we analyzes the American market-dominated financial system and the Chinese financial system. The conclusion is that the financial system as the object and environment of banking regulation is more resemble between Germany and China. Therefore, this establishes the basis for the transferring of banking regulation experience from German to China.Chapter 3 is The Theory of Banking Regulation and the Comment. The theory of financial regulation is organized and commented around three questions: why should banking be regulated?, how can banking be efficiently regulated? and how can the structural pattern be set?. This is the basis for the following analysis. According to the analysis, the author conclude that the banking regulation institution should be separated from the central bank and becomes a independent institution, if the integrated financial supervision need to be create following the trend of financial conglomerate.Chapter 4 is The Actual Design of Banking Regulation Framework.According to the theoretic organization of banking regulation and the summarization of the regulation praxis of several countries, the author divide the actual design of banking regulation into two tiers: the micro- and macro-tier. The micro-tier is the dual regulation mechanism, that is to say, ex ante regulation and ex post safety network, which emphasize particularly on the micro-tier. The macro-tier involves into the structural setting of banking regulation, that is to say, the structural pattern.Chapter 5 is The Praxis of German Banking Regulation. First, through the analysis of German bank corporate government the author finds out that the success of German banking regulation also relies on the good corporate government of bank. Hence, the author points out that the corporate government of bank should be regarded as the first line of defence for the banking risks. Then, the author analyzes the German banking regulation following the order of dual regulation mechanism and structural pattern.Chapter 6 is The Chinese Banking Regulation and the Problems. Following the above order of analysis, the author analyzes the Chinese bank corporate government, dual regulation mechanism and the structural pattern of the Chinese banking regulation. The author puts forward three opinions. First, a voluntary deposit insurance system among state-owned banks, non-state-owned banks and cooperative banks should be created, when the qualification is satisfied. Second, creating a joint-stock liquidation-bank that constitutes the central bank and all commercial banks is the reforming way for the LLR in the future. Third, the structural model of banking regulation is divided into 3 steps following the trend of financial conglomerate. First step, the harmony should be improved. Second step, the umbrella style of regulation should be created. Third step, the integrated financial regulation should be established.