Research On The Legal Issues Of Commercial Banking Risk Regulation

For a long period, rule-based regulation is the main form of banking system regulation in our country. Although China Banking Regulatory Commission and The People's Bank of China have emphasize the banking risk regulation gradually, the focus on which primarily is risk of credit but merely risk of other types. Currently, by the undergoing of opening of our banking industry at the end of 2006, the system of interest rate, exchange rate and capital markets have been operating more and more relative with economy. However, commercial banks have to face and cope with the risks of markets, interest rate and so on. A series of prominent problems of risk regulation has been put on the desk. Therefore, it is significant to study and research the laws of banking risk regulation.To consummate the laws and system of banking risk regulation in our country, those advanced international idea of banking regulation should be introduced and studied such as rules of The Basel Committee on Banking Supervision. This article reviews the evolution course, analyzes the laws framework and delves into the emerging issues of today's banking risk regulatory system. At the final part, the author raises a series of proposes to better the banking risk regulation law system aiming at the exposed problems in it.This article is constituted by four chapters except introduction.Chapter I: The elicitation from the transitional emphases of the Basel Regulation. At first, the author analyzes the four historical periods in which the Basel Regulation system transits, and then, particularly analyzes the development of the core principle of the Basel regulation by discussing how new version of the core principle acts in the process of incarnating the risk regulation rules. At last, according to the above, the author brings forth the transition of the Basel banking regulation system and concludes the elicitation the core principle brings.Chapter II: The evolution and framework of laws of our country's banking risk regulation system.In this chapter, the author induces the evolution course of our country's banking risk regulation system by four phases—the phase of the birth of the system, the phase of rule-based regulation, the phase of transition from rule-based regulation to risk-based regulation and the phase of risk regulation. The author probes into the framework of our country's banking risk regulation laws in three aspects which contain the laws, rules of management departments and standardized files of banking risk regulation.Chapter III: The defects in the banking risk regulation law system.There lies a large number of problems to solve despite the establishment of a comprehensive banking risk regulation law system. The first problem is the lack of collaboration of China Banking Regulatory Commission and The People's Bank of China as main characters in supervising. The second is that there are unilateral cases in the practice of risk regulation and the third is there lies types of flaw in the risk regulation law system.Chapter IV: Advices on perfection the banking risk regulation law system. One hand the legislation of risk regulation should be improved and on the other hand, specifying the main body of risk regulation and interrelated law systems. By the study and research from a juristic view, the author hopes the article could play a part in assisting the improvement of our country's banking risk regulation law system.