A Discussion On Government Banking Monitoring Methods

Banking is the main part of a financial system in a country, and also the core of financial development and economic operation. Bankruptcy of a bank will cause a series of problems. The crisis of a financial system will affect economic operation and then lead to social unsteadiness and political insecurity. Therefore, every country takes strict regulating measures to banks, controlling its external negative effects. At present, China's commercial banks have all limited innovative financial products and therefore not quite competitive, which puts them in disadvantages as China joins WTO. The effective supervision of banks ensures banking system's safety and correct operation.The main governmental agencies for banking supervision are the People's Bank of China and CBRC, which are the outcome of continuous improvement of banking supervision by the government and consequently have traits of political interfering. The study on banking supervision is not only a field of finance, but also an area of administration science. This paper attempts to investigate banking supervision problems from a point of view of administrative science, which belongs to a cross-reference among different subjects. It uses many study methods, like historical analysis, comparison, normative analysis, numerical analysis and so on. Additionally, it implements thoughts of institutional economics, public management, human resource management and financial economics to analyse problems in banking supervision and concludes in the end that successful and effective supervision of banks can only be achieved by continuously innovating supervising system and strengthening means of banking supervision.With the management hierarchy concepts in management, combined with the theory of central bank monetary policy independence in finance and our governmental institutional reform prospect, this paper proposes establishing a comprehensive governmental regulatory agency — state financial supervising board, to achieve a mutual supervision of a variety of financial institutions that are mainly composed by banks. So that the goal of information sharing and banking efficient supervision can be achieved.