A Study On Legal Regulation Of The Foreign Bank Supervision

Legal supervision over foreign banks is an important part of any country's financial supervision. After China's accession to the WTO, foreign banks have become a significant part of our banking system. We should attach more importance to the supervision. According to the promise to open banking market, the Chinese government will progressively wipe out restrictions of operational businesses and regions for foreign banks. It will enhance the rapid development of bank's market. But the rushing in of the foreign banks will surely bring tremendous risks. Therefore, the government needs to set up and improve law system of banking in order to overcome the disadvantages to be brought about by the financial globalization. An order of fair competition for foreign banks is to be created to bring the possible risks under control at the least supervision cost. Current legislation of China have offered the clear legal basis for the supervision on foreign banks, but it exist insufficiently in a great deal of respects, remain to perfect further.At present, there is still rather a big difference in the regulation over foreign funded banks in company to that in developed countries, which is embodied by incomplete legal bases, regulatory system and model with defect s; regulatory focus is not to the point; imperfect regulatory means, too lower national treatment for foreign banks; etc.In view of practice, the article has first, from a historical point of views, conducted an overall observation oh home and international supervision of foreign banks, and then stressed the observation on current conditions of supervision of foreign banks in typical countries and areas such as the United states of American, England and Japanese, which is believed to be able to help china reinforce the legal supervision over the foreign-capital banks operating in China.Later, the writer expresses his own opinions about this problem. Generally speaking, the law of supervision on foreign banks including four most important parts --- market access, business operation, risk management and market withdrawal. By analyzing the present Chinese laws about foreign banks supervision and the existing problems, this article makes a tentative probe on consummating the laws concerning supervision over the foreign - owned banks after China's entry to the WTO.The writer thinks that some corresponding measures should be taken to solve above problems, such as to formulate foreign bank law, to intensify cooperation with their mother countries in terms of regulation, to strengthen self-discipline of banking industry, in order to regulate effectively over foreign banks. Permitting foreign banks to be established in China is the important part in finance opening after China's entry to the WTO. So it is necessary to enforce the supervision over the foreign banks.