The Study On Ruling And Regulating Of Foreign Capital Banks By China's Domestic Laws Under The GATS System

Under the WTO commitment, China should open its banking market in the year 2006. This paper analyzes China's banking market after the transitional period for the compliance of its commitments according to the schedule. It comes out with the evaluation of the current condition of China's banking market from both practical and legal views. In addition, it provides a theoretic study of the balance between China's ruling over foreign capital banks by its domestic laws and regulations and the liberalization principle of the GATS system.This paper consists of five parts: part one is the introduction, it briefly introduces the current situation of China's banking market after the compliance of its WTO commitment. After raising the issue of this paper, it introduces the research method and the purpose, and tells the difference between this paper and other related research materials.Part two gives a general introduction of the GATS system and China's WTO commitments made under the financial sector. It evaluates some related GATS rules and China's commitments in detail. Then it concludes with the effects on China's banking market.Part three emphasizes China's foreign capital banking market in terms of the related laws and regulations. It first gives a theoretic study of foreign capital bank. Based on the historical development of China's foreign banking laws and regulations, it delivers the literature review of the analysis of China's foreign banks laws and regulations. Then, it studies the current banking market situation covering both domestic banks and foreign capital banks. Finally it comes out with the evaluation from both legal and practical view of foreign entry in the banking market.Part four evaluates the conflicts and balances between the China's regulating over foreign capital banks and the financial liberalization principle of the GATS system. It lists some solutions which would be the way to improve China's regulations and practices, and concludes with China's balances of interests.Part five is the conclusion. It puts forward the concept of coordination and cooperation under the background of financial globalization.