Research On The Conflicts Of The International Banking Consolidated Supervision And Its Harmonized Mechanism

In 2008, financial crisis exploded, and impacted on global financial industry. We have to search for defectives in financial supervision again. For the financial global developing in the late 20th century, a lot of enormous banks began to ardently expand, and then many multinational banks and bank groups were born. Because we lack of effective supervision, some branches'bad management has negative effect on their headquarters. Then a series of enormous banks go bankrupt. International supervision for multinational banks' mother country as the core of the authority and its summary, estimate, censor and supervise the operational information of their overseas branches. However, as Consolidated Supervision has two kinds of legal conflicts, there are many difficulties when carrying out it. First is the host country as the sovereign country, absolutely has the whole economic sovereignty. Thus the mother country of multinational banks cannot deeply obtain related operational information from territory of host country. Second is the implement of consolidated supervision depends on information disclosure. It causes a conflict with the aim of clients'financial information protection and banks secrets act. So information cannot be transmitted to mother country authority timely and accurately. These two legal conflicts has caused consolidated supervision cannot be carried out effectively, even be ceased to have effect. The essence is because conflicts blocks information transmission. It is asymmetrical between mother country and host country authority:mother country cannot timely control the risks happened or being to happen and it makes multinational banks cannot have the operating plans from their overseas whole business, so that banks are damaged or even go bankrupt.Therefore, today it's quite meaningful to look up the contents about consolidated supervision of Basel documents, use European and American consolidated supervision experiences, find suitable effective system to solve consolidated supervision legal conflicts, and make our authority effectively carry out the consolidated supervision to multinational banks'overseas branches. This paper is concerned with, from the birth, contents and features of consolidated supervision, finding two conflicts and discussing and proposing the effective solution system for the conflicts. According to two kinds of conflicts, there are two solution systems as follows:first is under the view of country's global financial security strengthening financial supervision cooperation among countries, and under suitable situation, host countries transferring a part economic sovereignty to other countries, to relieve economic sovereignty conflict. Second under the value collision between personal benefit and social good, choosing social benefit fitting for all human beings, meanwhile, establishing bilateral, multinational and global coordination systems and setting up information security terms, to relieve consolidated supervision conflicts between information disclosure and banks secrets act.