Study Of Capital Adequacy Supervision For Financial Conglomerated

Financial conglomerate belongs to the concept of financial innovation. This new economic organization has presented serious challenge to the conventional financial supervisory law. For example, though on the basis of the debt guarantee of the company law, in the financial separate mode capital adequacy has got great development whether in the legislation or law practice, on the condition of heterogeneous financial conglomerate, whether this supervisory method will be extended to the non-bank financial institution, or to the unregulated entity which can exercise great influence or has dominant position in the conglomerate, how to define capital, and how to prevent the same sum of capital will be double counted are of great importance to the effective supervision of financial conglomerate. The above-mentioned reasons have provided solid foundation for the author in selecting the thesis of the essay. The article can be divided into five chapters. Chapter 1 is entitled as the definition of capital and necessary analysis of capital adequacy supervision. In this chapter, the writer concentrates on a preliminary issue, that is, how to define capital. Meanwhile, hereafter from the economic and legal angle the necessity and effectiveness of capital adequacy supervision has been dissected. At the end of the chapter conclusion is drawn. Chapter 2 is entitled as consolidation supervision: the important legal form of capital adequacy supervision of financial conglomerate. Here, the writer deliberates on the consolidated supervision. Because consolidated supervision is one of the most important ways that are used to supervise financial conglomerate, furthermore it is outlined in the EU directives, in the writing objective exploration has been delivered to the EU's consolidated supervision. The chapter in question mainly concerns the following issues: definition of consolidated supervision, EU's practice of consolidated supervision. Then come the author's personal views. Chapter 3 is entitled as case analysis of capital adequacy supervision. In practice, capital adequacy supervision stems from some financial developed countries such as Britain and America, etc. Thereafter, the supervisory practice evolves to international financial custom that is called as the phenomenon of domestic law internationalized. This chapter explores the supervisory practice of America, Japan and Britain. The follow chapter is entitled as international coordination of capital adequacy supervision for financial conglomerate. Owing to the liberalization and globalization of finance, financial risks are not only restricted to the country where risks have come into existence. On the contrary, it can be expanded to the other countries. Therefore, international coordination of capital adequacy supervision is indispensable. This chapter involves the following: EU's legal capital adequacy supervision of financial conglomerate, analysis of the Basle capital accord, and legal proposal of the Joint Forum towards financial conglomerate. Chapter 5 is the implications for China in which the author dissects the imperfections of Chinese relevant laws with regard to capital adequacy supervision for financial conglomerate. It mainly concerns the Chinese legal provision of capital adequacy supervision, imperfections of China's capital adequacy supervision and suggestions of consummation.