The Relationship Between The Freedom Of Trade In Financial Service And The Supervision Framework Under WTO

The accelerating development of the liberalization of trade in financial services has been an important character for development of global economy and finance since 1970s. The liberalization of trade in financial services has accelerated the flow of global capital, improved the collocating efficiency of capital resource, enhanced the competition and cooperation of global financial services, and consequently has brought great active effects to the increase of economy and development of world trade. But the result of financial liberalization was mixed, especially in 1990s, with a lot of countries falling into financial crisis. Many economists began to reexamine the role and meaning of financial liberalization, and financial repression theory came back in some countries.The financial industry is a modern economy of core, while the bank is the core of the financial industry ,the bank crisis threatens not only the existence of the bank itself, but also will affect financial safety, the stability of the economic development and society. Therefore, all countries take charge of the authorities to pay all attention to control and prevent the risk that the whole financial system brings, from the angle of access to the market, dealing with the business and releasing the market. In the service trade of the international finance, most countries have set up various non- natural obstacles to foreign financial service and service providers in order to protect national finance industry, and this forms the trade barriers of international financial service promptly. There are rational factors in the establishment of the barrier of financial service, but its existence has really hindered the whole world of the international financial service.The (General Agreement on Services in Trade)-signed in Uruguay Round and (Agreement on Financial Services) signed afterwards play an essential role in promoting liberalization of global financial services.lt symbolized a new era of global financial services.However,the financial crisis erupted in Southeast Asia made people have doubts with the liberalization of financial services. Under this circumstance, it' necessary that we shall realize clearly the liberalization of financial services and the openness.China entered WTO in 2001 with the promise of opening RMB businisses to foreign financial institutions in 2006. Thus, Chinese commercial banks were first put under the great pressure of existence and reform in the situation of economic globalization and financial globalization. The researching and studying of this subject is of great significance for the stability of global financial market and international economy.