Research On The Comprehensive Consolidated Supervision Of Foreign Banks

Under the financial globalization trend it becomes an international topic to prevent the financial risk from happening. On the one hand financial risks are transferring continuously among all countries. On the other hand laws and rules of supervision authorities are different from each other, and it brings much leak and contradiction . It becomes more urgent and more important for all financial supervision authorities to cooperate and coordinate . The comprehensive consolidated supervision on foreign banks by the home country authority and the host country authority is an effective way . We ought to divide the respective supervision responsibility between two countries .It can minimize the effects of financial risk and keep safety and soundness in financial system. The paper emphasizes the cooperation with the home country on the basis of the host country supervision . With the help of the home country authority , the valid and unitary supervision will be realized. The article consists of three parts, that is eight chapters ,with about 39000 Chinese words. In chapter One, it analyzes the necessity of the comprehensive consolidated supervision, and demonstrates its fundamental value theory . It makes much clearer for the economic sense of the comprehensive consolidated supervision . I analyze the composition of values of supervision legal system :order, benefit and equity, andgo deep into the principles of dividing supervision responsibilities between home countries and host countries . In chapter two, it makes a general introduction of regulations and rules about the comprehensive consolidated supervision in the Basle Committee' s files, and makes a study on the practice of U. S. A and European Economic Community (EEC) on the comprehensive consolidated supervision. This section is trying to probe into patterns of the international super- vision cooperation . In the third chapter, it gives some suggestions for supervision legislation and our legal system , and points out the direction of perfecting the relevant legal system . For example , to make regulations about the comprehensive consolidated supervision clear , to improve the system of in- formation exchanging, to take a respective supervision for different forms of organization of foreign banks , to build the early warning mechanism of guarding against risks with the home country , to adapt to the financial innovation tendency , to make the supervision cooperation agreement with the home country ,and so on .These measures should be written in the law .At last , it draws the conclusion:We will strengthen the supervision cooperation with the home country authority through drawing lessons from the Basle Accord and setting up the idea of the comprehensive consolidated supervision . Thus the worldwide financial risks could be prevented .Under the financial opening and financial safety, the comprehensive consolidated supervision will accelerate the development of our bank system with the safe and steady goal .