Study On Legal Issues Of Safety Security Of Foreign Banks In China

The safety security legal system of foreign banks is an important part of Chinese bank supervision law. With the full liberalization of China's financial market, foreign banks flowed in and they had some motive effects on our economy absolutely, but also had negative effects on some aspects, such as carrying out China's monetary policy, the balance of international revenue and expenditure and avoiding financial risks, and so on. To resolve the financial risks, it is necessary to supervise foreign banks prudently and effectively. The above actions can efficiently guarantee and advance sustainable, healthy and safe development of Chinese banking. So, how to better foreign banks safety security legal system in the context of financial crisis as soon as possible becomes a subject with great theoretic and practical significance. And this must be based on learning the international practice about financial supervision and other country's legal system and associate with the realities of our country.This article aims at exploring and researching the safety security legal system of foreign banks systematically. Firstly, the article conducts a general analysis of safety security of foreign banks. It elaborates the notion and significance of foreign banks safety security, and analyses the theoretical and practical basis of the safety and security of foreign banks. And then this dissertation comparisons the main developed countries' rules about foreign banks safety security. Meanwhile, it gives comments of regulation on foreign banks safety security provided in GATS and Basel II. The third part discusses the actuality of foreign banks safety security system in our country in the basis of analyzing the foreign banks' operation performance and risk status. The main problems are as following: the relevant legal system is not complete; the view of risk supervision is backward; internal control system of the foreign banks is not perfect; lack of market constraint mechanism; lack of international cooperation and so on. At last, a series of suggestion on how to better the safety security system of foreign banks in our country is given: above all, an independent Foreign Bank Law should be formulated to form a complete foreign banks legal system, and the foreign banks supervisor's idea should be transformed. It's also necessary to improve the defects on our country's rules of foreign banks safety security. Finally, we should strengthen the international cooperation in this area.