On Effective Banking Supervision In China

Since 1990s,a series of financial accidents have taken place, for example , Brein bank Yamoto bank in Japan, finance crisis in Mexico and southeast Asian and so on. These accidents not only have great bad impact on the financial organization, financial market and the development of economy ,but also give people a serious question ,that is ,how to implement efficient supervision as the currencization of market economic is higher and higher.In order to further unifying the banking supervision standard in the world and construct effective banking supervision. Basel committee manage to Basel agreement in September 1975;On the HongKong annual confere of World Bank and IMF in sep. 1997,Basel committee issued Core principles of effective banking supervision to the supervison authorities. In April 2003,Basel Committee issued the third version of New Capital Accord for comments. The new accord became effective in June 2004.It unifies the minimum capital requirement, regulation of developed countries in practice. The issuance of it will bring a great challenge to Chinese banking industry, which is in the progress of opening to the world.Beginning with the theory and practice of international effective banking supervision and then by researching China's banking history and the core of reformation, this work analyses some problems of China's effective banking supervision, as that China's effective banking supervision is established very late, the supervisor is simplex, the legal system is unenlightened, the supervisory institution is lack of lawful consciousness, the banking risks will be increased and the banking supervision will be more difficult after the entrance of WTO, there're many defects in state-owned commercial bank's property-right system and supervisory system..Based on the theory of effective banking supervision and practical research, this work put forward some countermeasures to solve the problems mentioned above by combining with China's practice in banking supervision. We should implement prudent, effective supervision to benefit depositors and consumers, enhance market confidence and frustrate financial crime. We should make a plan to put effective supervision in practice by joining China's current banking supervisory system with BIS effective supervisory principle and international effective supervisory experiences.We should improve the Banking Supervision Committee's executing ability, strengthen the banking supervision, advance effective banking supervisory legal system, promote the reformation of bank's property-right system, better the structure of entertainment administration, convert supervisory conception, adopt the supervisory method joined with international supervision, strengthen the correspondence of three supervisory institutions, build up a predicting and processing system, eliminate the factors restricting effective banking supervision to promote the healthy, steady development of finance.