On The Improvement Of China Banking Supervision Legal System From The Analysis Of Core Principles For Effective Banking Supervision

Core Principles For Effective Banking Supervision("Core Principles") has been originally published in September,1997 by the Basel Committee on Banking Supervision, by which it has been amended in October, 2006, 9 years after it entered into force. The author conceives the revised version of Core Principles as an international standard document which has world-wide applicability and great significances for the innovation of a new financial supervision system as well as the prevention of financial risks in the course of economic and financial globalization. As a significant achievement of systematic research on the issue of banking supervision, Core Principles has scientifically summarized the basic elements and constructed the basic principles for an efficient banking supervision system. It has adopted opinions from IMF, World Bank, national banking supervisory authorities , commercial banks and local banking supervision entities, and absorbed the advanced ideas and supervision experiences from different countries during its drafting, revising and the deciding of final form. Therefore, it enjoys the characters of foreseeing, authority in the supervision ideas and models, of meticulousness, operability in its context and procedures. For the reason foresaid, Core Principles has received extensive support and gained more and more contracting states. It has greatly influenced the establishment as well as improvement of banking supervision system, and dramatically propelled the systematic reform of banking industry of world countries , including China.Meanwhile, insofar as China adopted and referred to some rules in Core Principles, it has successfully achieved the reform and legal system constructure of banking supervision. Great progress has been witnessed in aspects of improvement of banking supervision mechanism and of strengthening banking supervision and regulation. Be that as it may, remarkable disparities still exist in China banking supervision mechanism, related legislation and systematic establishment by comparing the requirements provided for by Core principles with China current situation. Concurrently, facile theories on related issues, too many thesis or academic books were written from the view of economics instead of that of law. In light of this, the author conducted her research from the view of scientific development, by employing economic theories, drawing lessons from related practices of China banking supervision mechanism and its legal system establishment in recent years. The author started her thesis with the analysis of the international background, great influence, guiding significance as well as the basic content of Core Principles. Then she pointed out the weakness of China banking industries as regard to market discipline, comprehensive risk management process, internal control system, information disclosure, supervision of withdrawal from the market. Finally, the author proposed the preliminary thought of establishing a better banking legal system by learning from Core Principles and advanced banking supervision system in other countries. This thesis is aimed at a timely adjustment and refinement of China banking supervision legal system, where a modern banking supervision system could be set up in accordance with Core Principles to put China banking supervision system on a standardized, ordered and legalized track.