Theory On The Reformation And Perfection Of Banking Regulation And Supervision Law In PRC

The healthily development of the economy of China depends on the order of the financial market. The financial market is the core of the modern market economy. Banking regulation and supervision plays an important role in financial regulation. In the recent decades, the financial regulation law has changed a lot due to the rapid growth of our economy and financial business. Correspondingly, the banking regulation and supervision law shall be adjusted. I Summarization of the banking regulation and supervision lawThe banking supervision means that the governing department on supervising the banking affairs directs the banks and similar institutions to carry out business healthily and safely through comprehensive and regular supervision. The banking regulation means that the authorized departments lay down the laws and regulations on baking business according to the relevant law. Baking regulation and supervision means the governing department on supervising the banking affairs regulates and supervises the banking institutions to make sure a safe and steady functioning by using its administrative power.The banking regulation and supervision law is the amalgamation of public law and private law. It is the necessary branch of economic law. The banking regulation and supervision law is the generic term of those mandatory rules and regulations on regulating and supervising the banking institutions.To optimize the regulation and supervision is the basic principle of banking regulation and supervision. The core of the principle includes four elements: regulating and supervising in accordance with the law, rational regulation and supervision, regulation and supervision within measure and effective regulation and supervision. The banking regulation and supervision law is a complicated mechanics of rules, which usually consists of the system of admittance, the system of financial prudence regulation, the system ofdeposit insurance, the system of conjuncture handling, etc.II Compare of the banking regulation and supervision law in developed countries and its trend of developmentThere is the most severe banking regulation and supervision law in America. Meanwhile, the efforts to improve the structure of banking regulation and supervision are at dawn. In German, the system of the banking regulation and supervision law is advanced and effective. Along with the globalization of the world economy, the individual system of banking regulation and supervision of the modern countries keeps amalgamating. The Basle Capital Accord amended in 2001 brings forward three mainstays for the supervision of capital adequacy such as Minimum Capital Requirement, Supervisory Review of Capital Adequacy and Market Discipline. The Basle Capital Accord is of great importance to our efforts to establish a banking regulation and supervision mechanism and law system with the features of China.III The status quo of the banking regulation and supervision law of China and the theory of perfection The banking regulation and supervision law of China has been established but is far from perfect. In perfecting the banking regulation and supervision law, we shall pay more attention on the coordination of the internal relationship in the system, accept the international vulgate rules, and stick to the discipline of optimizing the regulation and supervision. We shall establish the relevant system and mechanism, such as internal control system, supervision guarantee system, take-over mechanism, deposit insurance mechanism, information disclosure mechanism, etc. With such a banking regulation and supervision law system, we will limit the abuse of the administrative power, coordinate the social interest with the private interest, and achieve the unification of equity, order, benefit and efficiency.