The Research About The State-owned Commercial Bank Supervision

Bank Supervision is striving for a kind of optimised balance among such factors as encouraging the bank to improve its service, stimulating the energy for competition, maintaining the paying-off ability and steadiness of the line. Due to the un-integration of the market and the publicity of the products offered by the bank's financial organizations, when the market is out of control and the information is not symmetric, it is necessary for the government to conduct external supervision on the financial organizations of the bank. So, the supervision on banks is a kind of governmental behaviour basing on the market behaviour and legal behaviour. Comparing with securities line and insurance line, banking affects the social steadiness in a higher level, especial the state-owned commercial banks, which occupy a great majority of the financial resources, has almost monopolized China's banking industry, thus greatly affecting the steadiness of the society, the politics and the economy. So the bank supervision authorities in our government supervise the state-owned commercial banks because of the un-integration of the market, that is, the out-of-control of the financial market, on the other hand, because of the dilemma and the huge business risk in management faced by the state-owned commercial banks presently. If these problems of the commercial banks could not be solved successfully, it will be inevitable to greatly harm the economic development of our country. Basing on these two reasons, the governmental supervision organs should have to conduct strict supervision on the state-owned commercial banks in order to diminish the risk and decrease the possible damage on the social economy brought by the risk of the commercial banks and protect the benefit of the savings depositors. The supervision function on our country's commercial banks has ever been practised by the People's Bank. Since April 28, 2003, the bank supervision function started to be practised independently by Bank Supervision Committee. The bank supervision function has been separated from the People's Bank, which has endowed the bank supervision authorities more independence to a certain extent, and which is positive for the bank supervision authorities to better fulfil their obligations, for protecting the benefit of the savings depositors, for protecting the safety and steadiness of banks and improving the social welfare. At the beginning of the establishment of the Bank supervision Committee, it put the emphasis on the supervision of the state-owned commercial banks. With respect to the problem that the bad loans proportion of the state-owned commercial banks kept increasing, they, basing on the principle of cautious supervision, popularised an omni-bearing management on risks, urged all the state-owned commercial banks strengthen their internal management, further their reforms and make effort to increase their competition force. They also supervised and urged the commercial banks to increase the transparency of their business, to correct the existed or the possible improper corresponding transactions and the "internal behaviour" with real-time, effective on-site examinations and scientific, strict non-on-site examinations, thus helping the state-owned commercial banks speed up their steps for reformation, increase their assets volume, strengthen their risk-resistance ability. But we should note that, as we have not formed a complete set of supervision system that suits the supervision of the state-owned commercial banks up till now in our country, further more, there are many problems in the state-owned commercial banks themselves, the bank supervision authorities fall into a dilemma in making choices in the bank supervision work. Firstly, the problems, such as the problem of the four state-owned commercial banks themselves and the external environment, such as the imperfect legal system, the weak market restriction system, the inadequate bank supervision and state-owned enterprises, are mingled, a slight move in one part may affec...