Studies On Several Legal Questions Of Supervision Of Foreign-capital Banks In China

Since the five-year transition period of the opening up of China's banking industryhas already finished, China are opening the business of RMB to foreign-capital banks inan all-round way. The broadening of current business scope of foreign-capital banks,combined with the entry of more foreign-capital banks,has brought unprecedentedchallenges to the supervision ability and legislation level of foreign-capital banks of ourcountry.This dissertation aims to systematically explain and analyze several legal issues of theforeign-capital banks supervision after transition period, from host country's point ofview in financial security and development of banking industry, in order to improve theweak link of the foreign-capital banks'supervision of our country in the legal aspect.This dissertation mainly adopts Comparative Analysis Method and DemonstrationAnalysis Method. From three aspects, including prudential supervision, reasonableapplication of National Treatment Principals and supervision of foreign-capitalshareholding Chinese banks, the legal issues that foreign-capital banks are facing aftertransition period in our country have been analyzed in details through the way of raisingproblems, analyzing problems and solving problems.With regard to prudential supervision, there is a characteristic of dual restriction in the system of financial trade service. On the one hand, certain restrictive measures whichare adopted to protect China's industries have been based on juridical logic. On the otherhand, caused by financial global integration, these supervision measures have to beprudential. We set up various standards of financial ratios in supervisory legal documents,such as capital adequacy ratio, asset liquidity, loan loss provisions, etc., introduceConsolidated Supervision and unveil legal person-oriented policies for foreign-capitalbanks in order to improve the prudential supervision of foreign-capital banks of ourcountry. In the face of controversy between Super-national Treatment and Low-nationalTreatment of foreign-capital banks, we should not only make sure the precise meaning of"National Treatment"Principle in International Economics Law from the level ofjuridical logic, but also carry out this supervision principle in the legislation afterward.Actually, this is also an extended problem of prudential supervision and both of them paymuch attention to the dual interests of foreign-funded subjects. As for the hotpoint of thespecial way that foreign capital enters into banking industry, that is"buying a share", theownership proportion of the foreign party has to be strictly controlled, the withdrawalmechanism of foreign-capital banks after becoming a shareholder must be regulated andthe path of"exchange-shareholding"should be explored properly. In addition, theresponsibilities of supervision departments need to be arranged and cooperation shouldbe strengthened.This dissertation is divided into four chapters, of which chapter two, three and fourplay a role. The author has mainly discussed three hot legal problems from supervisoryaspects in these three chapters. The content and structure of this dissertation is arrangedas follows:Chapter One introduces the development of foreign-capital banks in our country andthe evolvement of related legal documentation and puts forward the legal problems facedby the supervision of foreign-capital banks.Chapter two is conducted to describe the principles of prudential supervision andcorresponding regulations in Basel. According to the regulation in our law, the authoranalyzes several important indices of prudential supervision, and then brings forwardown opinions correspondingly. With reference to the third point of this chapter, facingthe new situation of banking industry after transition period, the author evaluates and states the new tendency of two prudential supervision issues, which are consolidatedsupervision and legal person-oriented policies for foreign-capital banks.Chapter Three expatiates on a focused issue, that is, the Principles of NationalTreatment. Firstly, this part introduces three principles that how one country regulatesand supervises foreign-capital banks and the way to use them. Thereinto, it mainlydiscusses the theory of National Treatment Principles and the development during thepractice of International Economics Law. Secondly, after systematically stating theapplications of these principles in our banking industry, the author clarifies two legalmistakes of National Treatment Principles in supervision aspect. At last, perfectcountermeasures are proposed when Chinese banks confront the National Treatment offoreign-capital banks.Chapter Four discusses the special form that foreign capital invests in Chinese banks.Facing the controversy between"Threat Theory"and"Anti-threat Theory", the authorillustrates the personal view to this problem and proposes perfect countermeasures tosupervision law about foreign capital investing Chinese banks.