| How to supervise banking industry's risk is the crucial problem that most of the world's governments have to face. Soft budget constraint greatly reduced the effect of banking risk supervision, so it's not easy to realize the safety and stability of financial system only with minimum capital requirement. The three backbones of minimum capital requirement, supervisory review process and market discipline mentioned in Core Principles for Effective Banking Supervision and The New Basel Capital Accord have drawn up new regulations for banks' risk supervision. In consideration of the main impact of soft budget constraint brought to our country's banking risk supervision and limitation of the three backbones, we conclude it's necessary to gradually strengthen the soft budget constraint.This thesis analyzes soft budget constraint of banks and draws up a set of policies and measures for banking industry in China. The whole thesis is composed of four chapters. The first chapter introduces the theories, purpose and content of the thesis. The second chapter analyzes the potential and infection of bank's risk and the necessity of banking risk supervision. The third chapter discusses the formation mechanism and result of soft budget constraint with some typical cases at home and abroad. The fourth chapter analyzes main problems and reasons of banking risk supervision in China, finally draws the conclusion that gradually strengthening the soft budget constraint is a sensible choice for banking risk supervision.
|
PDF Full Text Request