In The View Of The Practice Of International Consolidated Supervision To Analyze The Improvement Of The Banking Supervision Law Of China

Consolidated supervision is the core principle deciding the efficient supervision over international banks and cross-border establishments. Complementing on each other, host country supervision and consolidated supervision constitute the international cooperation mechanism on supervision over transnational banks. Serve as a risk supervision method with comprehensiveness, persistency and purposiveness, consolidated supervision meets the supervision requirements that derived from systematic financial risk against the background of financial globalization. Its importance becomes thus increasingly apparent.Its development from scratch, from theory to realization is indispensable to the joint effort of Basel Agreement and EU. Though constructive influences Basel Agreement has exerted on the improvement of consolidated supervision system, it is the ineffectiveness of whose law that mainly blocks the efficient actualization. Against the economic backdrop of integration and supervision law, Directives on Consolidated Supervision over Banks introduced by EU in 1992 appear more systematical than ones by Basel Agreement. A comparative analysis between the two systems represents great beneficiation to banking supervision law of China.Facing such developing trend of collectivization, the banking supervision law in china however, cannot catch up with the developing rhythm. Measures for the Administration on Consolidated Financial Statements in Conducting Supervision Over Foreign-funded Banks published in 2004 gives only a principled guideline to the consolidated supervision over foreign-funded banks; Guidance on the Supervision over the Consolidation of Financial Statements(for Trial Implementation) in 2008 discards the old model of discriminating legislation to domestic-funded and foreign-funded banks, however, remains a series of problems like low legal effect, ambiguous consolidated supervisor, obstructed information security and sharing mechanism and so forth which will surely block the development of Chinese banking. Accordingly, China should improve consolidated supervision law system basing upon home financial capital and borrowing advanced experiences abroad. Specifically, the measures can be taken from 3 aspects: above all, renew the theory and to build up a comprehensive supervision theory, actualize financial sovereignty and safety as well as realize the coordination between financial privacy and information disclosure. Furthermore, from the aspect of domestic law: establish consolidated supervision as the legal principle; formulate a cognizance standard for the metropolitan supervision system; diversify the means and measures of supervision and consummates coordinated sets of measurements; Last but not least, from the aspects international law: strengthen the communication on acquaintanceship; set up a cooperation mode of bilateral agreement; improve the secrecy and communion mechanism.