Research On Perfection Of The Legislation To Supervise The Foreign Capital Banks In China

In the financial service realm, China has undertaken the material market admittance duty when it entered into WTO. More foreign capital banks break into china than before. The different operating characteristics and outstanding financial risks make it very important and urgent to enforce the supervision legislation. According to the development situation, based on the legislative experiences of other countries and a series of documents that the Basel committee promulgates, this paper gives some suggestion on how to perfect our national foreign capital bank supervision legislation.Firstly, the present situation and management characteristics of the foreign capital bank in china are mentioned. Then, this paper emphasizes that it is very necessary to enhance the foreign capital bank supervision legislation. As for the necessity of the foreign capital bank legislation supervision, this text discusses five reasons, namely: prevent the foreign capital bank from the control and damage of our national finance industry, protect the domestic banks not to encounter the damage of the false competition of the foreign capital bank, avoid and decrease the self-risks of the foreign capital bank, protect the customer's legal rights, prevent the disturbance of the domestic finance order etc. Secondly, it analyzes the present legislative condition and existent problems, especially the modifications and the defects about Regulation on Foreign Capital Financial Institution Management and its Detailed Regulation. The existent shortage includes: the law system is still not perfect; the lawmaking orientation exists problem; the market admittance and operating risk supervision rules are not perfect; the index system and the supervision way fall behind; the important rules lack etc. Especially, Regulation has been promulgated by State Department. In WTO realm, it is belong to the regulation and policy of the government. When carry out the lose lawsuit and has to modify it, our government has the very short term to do it. Domestic bank and government department can hardly complete the homologous adjustment. It is very disadvantage in protecting the domestic bank benefits and beautifying our nationalimage in the world. Lastly, how to further perfect current law is discussed from five suggestions: One, the NPC should promulgate a specialized Foreign Capital Bank Supervision Law, which can increase 1 to 5 years' adjustment period; Two, supervision principle includes: excellence, equal stress on open and prudence, appropriate protection of the domestic banks, creativeness etc. Three and four, the authority of the supervision administration and the treatment of foreign capital bank should be clear and definite. Five, risk supervision should embody the definite admittance standard, scientific supervision index system and methods, the perfect crisis disposition and withdrawing procedure etc.