Legal Research On The Supervision Of Chinese Bank

1.The Background and the Meaning of the topic In the system of the market economy, finance is the most competitive and the most risky field, is the ganglia of the country economy. Once there is any risk appears in any other industries that will be hardly influence the whole country economy. Only in the field of finance, once any risk appears, it will be a big influence in the country economy. In China, banking always possess the biggest proportion in finance industry. In these years, as the rapid progressed in electron and network, the relationship between the bank, the enterprises and the individuals become closer in the deep and comprehensive view, in case there is any problems in the banking, there must be a huge impact in the whole circulation of the economy. There are apparent and latent risks existing in the banking of our country. In the year of 1998, the close down of the Hainan Development bank; in the year of 2001, the bankruptcy of the Xunda City Credit Union in Taizhou, Zhejiang province, those make us alert. In addition, the connotative problems, which appear in the operation of the commercial bank unveiled gradually: the quality of the credit capital is not high, has a big latent risk; the ample ratio of the capital is low, the capital is deficient seriously; the structure of the capital debt is illogical, the fluidity of the capital has not dropped; the income of the bank capital is low, the running cost is high; the crisis salvation and the market exit mechanism is not complete; additionally, the inburst of the foreign bank, the whole shoot are not the specific phenomena of the individual banks, and that put up a systemic risk. Although the collectivity status under the macro control of our country is comparatively balanced, the risks of bank have not rise completely, but if the risk of bank will not be controlled and resolve effectively, let it expand and accumulate continuously, the extensive risks break out in banking will be possible. It determines that we should strengthen the surveillance and the administration of the banking in the new environment, to control and resolve the financial risk. Above are the meaning and purpose of this article. 2.Construction and main content of this article This article is consisted of four chapters. The first is about the basic theory of banking supervision. Free banking policy is based on freeeconomy idea which deems it unnecessary to supervise banking because of its own purpose to maximize profit and the subsequent cautious operation. But supervision is necessary and important due to defaults and defects of market system, vulnerability and publicity of banks. Essentially banking supervision law is society oriental, coordination of interests conflict, and economic law. The main aims of the law is to maintain the stability and safety of the financial system, to safeguard interests of banking account owners, investors, and other publicities, to enhance fair and effective competition within financing and banking systems, and to assure a healthy development of the banking industry. Supervision over banking should be lawful, rational, and moderate. The history and present situation of the banking supervision are briefed in the second chapter. The history may be divided into four stages: The first is from the foundation of PRC through the eve of opening up toward the world. There was no real meaning banking supervision. The second is an arising period spanning from 1978 through 1984. The third is the framing time from 1984 through 1997. The fourth is the regulation formation stage beginning in 1998 through now. In this chapter, present situation is analyzed from two aspects as supervising body and related laws; the duties of BSC and its relationship with PB are studied in detail; more attention is paid to defaults in present supervising law system, mainly including: (1)its elements are not so well coordinated and not sological; (2)not well oriented to fulfill effective supervision and commercial banks'efficiency object; (3)its construction and supervising methods are not completed; (4)parallel internal control with professional refraining mechanism is overlooked; (5)not so suitable for banking internationalization. The third chapter is about the supervision practices in America, Britain, and Germany. It also introduces B agreement. Their affects on and direction for China are also discussed. The fourth chapter is an emphasized part of this article. In this part present supervision situation is thought over, viewpoints and suggestions are given. With regard to supervising body, to some degree the foundation of BSC, its development trend and its duty coordination with central bank, the establishment and strengthening of professional regulation association are well studied。Here are some advices on law system of detailed supervisions :(1)Stress internal coordination and integrity of the law system of supervision in the process of making and modifying the laws ,regulations or rules; (2)Pay full attention to use the experiences from other counties for reference according to the real situations in our country, especially from the countries in which the experiences on supervision law systems are riper. We should also take in the rules and regulations boldly abided by in the world;(3)Deal well with the relations among relaxing supervision ,bettering supervision and strict supervision;(4)Consummate interior controlling system and re-supervising system of the banks; (5)Constitute law system of crisis-saving of the banks. Analyze the supervision and management of banks under the situation of the finance-opening. 3.About the method of written and the new opinions After the confirmation of the topic, the author has searched and read a lot of literatures and material, combined with all the theories which during the author took the master course, and a number of years of experience when I worked in the commercial bank, exert the combination of the theory and practice method, the combination of the quantitative analysis and qualitative analysis, make this dissertation straightaway at the theory, clear at the practice, try to avoid abstruse and obscure for the style of the language. The new opinions of this dissertation consist in the demonstration analysis for the bank supervision legal system of our country, and the analysis towards the trends of the principal part of the financial supervision. In addition, there is also a new point of view for the consideration and the advice to the supervision legal system.