Research On Regulatory Laws Of Private Capital Entering The Banking System

In the current reform of the banking, there are some obstacles for domestic private capital entering China's banking. Laws didn't restrict this state of affairs, but the private capital was resisted in practice. Nowadays, State-owned capital is dominant in China's banking, and foreign capital has already invested China's banking at preferential prices, but it's very hard for domestic private capital into banking. Capital of foreign banks will vary with the global relative profitability which conditioned by profit-driven of foreign capital, therefore the so-called strategic investors will evolve into the financial investors who chase the reality profits. This situation results that if we want China's banking sector to become bigger and stronger, it must depend on domestic capital. Thus, domestic private capital should be rendered national treatment to deepen domestic reform at the same time of opening to the outside world. For promoting domestic private capital to enter China's banking and the development of private banks, it is necessary to set up a sound regulatory law system in order to protect domestic private capital in the banking sector to run steadily.In this paper, I try to do exploration and research on the basis of analysis of the actual situation at the point of view of setting up private banks. There are threeparts in this paper--the preface, the text and the conclusion. There are fourchapters in the text..In the first chapter, I make a general description of the status of domestic private capital's investment and focus on the status of more sharing but less holding. And then I pose the necessity of developing private banks and monitoring them.In the second chapter, I introduce the general law system of domestic private capital entering the banking which consists of the goals, tha principles and the norms of the general law.In the third chapter, I introduce the legal regulatory framework of domestic private capital entering the banking and the current situation. The last chapter is the innovation of this article. In this part, I try to do exploration and research on setting up the legal regulatory system which consists of the laws of access, operator and exit of private capital on the basis of analysis of private capital's risk.