The Establishment Of Cross Strait Financial Co-operation And Exchanges Mechanism Model Progress

This study divides the investigation of financial supervision into three aspects. The first being the aspect of government supervision, consisting mainly of financial authorities'direct supervision of financial institutions and indirect supervision on financial inspection by accountants. The second aspect is the management of financial institutions themselves, including an internal control system, an internal auditing system, risk management and inspections. The final aspect is the restraining by the market itself, including the forces of sanction and self-imposed discipline of the financial associations.For government supervision, this dissertation summarizes on the supervision mechanisms found in the advanced countries, and on this basis provides an analysis on the similarities and differences in the policies and practices found on either side of the Taiwan Strait. For the management of financial institutions as well as sanction by the market itself, a study is made of the governing principles of the Basel Committee on Banking Supervision, in particular the Core Principles for Effective Banking Supervision, and the New Basel Capital Accord, supported by the case analysis of how the New Basel Capital Accord was put into practice in the US, and finally provide an exploration of how the New Basel Capital Accord and financial renovations could be approached on either side of the Taiwan Strait.Concerning the current trend in the development of financial institutions and prospects of cooperative development across the Strait, this study makes a comparison of the history and the current status of financial liberalization on either side of the Strait, and further analyzes the effects of allowing foreign capitals into mainland Chinese banks on the entry strategies available to Taiwan banks, and finally, in way of suggestion, propose an exchange platform suitable to financial cooperation and supervision between the two sides of the Strait that includes considerations of the particular characteristics of both sides.