The Research Of Bank Supervision Efficiency

As an important component of the finance medium organization, the banking plays aextremely significant role in modern economy, because it comes together the surplus of theshort-term funds belonging to the social public or other organization to be its own fundssource and utilizes it through risk combination, which makes itself become the corpus of theexterior margin. Bank supervision means that the Center Bank or other financial supervisionbureau, according to the national law and regulations, carries out a series of successive,unified and standard supervision to the banking from market permission, business activity,management condition, behavior norm to the process of withdraw from the market. It alsoincludes the supervision and penalty taken to the person who interferes with the properfinancial movement and does business illegally. In other words, bank supervision aremeasures adopted which will insure that the bank runs prudently and keeps enough funds andreserves to resist the business risk. Excessively strict bank supervision usually emphasize the safety of the financial systemunilaterally, which results in the low efficiency, affects the development of the banking andfurther the national economy. On the contrary, under the condition of financial liberalism,relaxing supervision will lead to the frequent emergence of the banking crisis. As a result, thecontradiction in the development of modern finance, safety and efficiency, comes out in theprocess of bank supervision .It is usually very hard to consider both sides. There is a close relative between the foundation of efficiency principle in the field ofbank supervision and the changes of the modern supervision theory. Although inhibiting andobstructing the development of the banking to some extent, bank supervision promotes banksystem to compete fairly and efficiently on the safe and stable foundation .The target of banksupervision is to create a kind of high—efficiency management mechanism, which canencourage competition, urge the bank service to be systematic to operate more smoothly inthe market economy and gradually to pay attention to the supervision of bank efficiency. The writer thinks that bank supervision should include two layer contents: the first is thatwe can protect the interests of the depositor through supervision, improve the participant'sability of market competition and anti—risk and raise the efficiency of the banking; thesecond is that the authorities cut down the cost of supervision and increase the efficiency. Along with the rapid development that our country enters the Word Trade Organizationand the financial globalization, it is sure that the banking will be faced with huge competitionpressure, and finance supervision will confront new challenge as well. Therefore, whilepushing on the reform of bank and bank supervision, we should attach importance to thevalidity of bank supervision and the improvement of supervision. The Constitution of Bank Supervision was established on April 28, 2003, whichsymbolizes the end of the history that the Center Bank has to act as several roles for twentyyears. Certainly, our financial system will go into a new period from now on. In the recenttwo years, The Constitution of Bank Supervision has done its utmost to maintain theconsecution and stability of supervision work, promote the innovation of supervisionmechanism and the construction of law system, renew principle and perfect supervisionmeans. While seeing the achievements, we should recognize that the efficiency of ourConstitution of Bank Supervision has a long way to catch up with that of the developedcountries. There are plenty of problems that influence the improvement of the banksupervision efficiency.