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International Comparison On Foreign Banks Supervision And The Supervision Of Foreign Banks In China

Posted on:2006-03-09Degree:MasterType:Thesis
Country:ChinaCandidate:H E WangFull Text:PDF
GTID:2156360152483212Subject:Finance
Abstract/Summary:PDF Full Text Request
Along with China's entry into WTO, multinational banks are developing more rapidly in China than before. So it is more important to supervise the foreign banks in China. This paper aims at finding out and solving the problems in supervision of foreign banks in China through international comparison among other countries of the world. As to theoretical foundation for supervision of multinational banks, there are two main theories. The one is the theory of finance market failure, which is generated by negative externality and asymmetric information, etc. The other one is the Financial Fragility theory, such as Financial Instability Hypothesis by Hyman Minshy, Bank Run Model by Diamond-Dybvig. Furthermore, the realistic background for the supervision of multinational banks is its internationalized operations accompanied by more sophisticated risks. "How to supervision" is generally elaborated by many countries in a sequence of three interrelated links-market access, market operation and market withdrawal. The writer also analyses the practice in other countries in this way and stresses the observation on current conditions of supervision of foreign banks in some typical countries and areas. As for as the supervision of foreign banks in China, there still exist some problems. The writer analyses it systematically. At last, the writer puts forward establishing a supervisory framework for foreign banks in China, of which risk control is the core. In this framework, based on the successful experience of some countries, the writer gives specific suggestions on how to improve the supervision in three links.
Keywords/Search Tags:Multinational bank, Supervision of foreign banks, Supervisory framework
PDF Full Text Request
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