Effectiveness Of Chinese Banking Supervision Under The New Basel Capital Accord

Since the beginning of the 1990s, the international financial crisis everywhere, volatile, a series of major international financial events happened, such as : the Asian financial crisis, the United States LTCM, these events made a bad influence to financial institutions, financial markets and economic development. Also on June 26, 2004, the Basel Committee issued the "capital measurement and capital standards of international agreements: Amendment framework," decided to begin by the end of 2006 in the G10. Thus, after six years of international negotiations, the major impact in the international financial field and has caused much concern and controversy in the new agreement was finally formally introduced. Despite the new Basel agreement remains controversial, but the new agreement provides a relatively risk management system. This also raise a issue of the new Basel agreement, how to implement banking supervision more effectively.Based not only on further studies in plenty of documentaries and references domestic and abroad, but also literature review and case studies on the People's Banks of China, this article come into birth. The main ideas are as follow:Firstly, financial supervision theories are put into consideration, which bring about the necessity of the supervision and deduce the effective issue. Summarized four theories on financial regulation: public interest theory, the theory of interest groups, correlate theory and legal theory.Secondly, a brief description of the "New Basel Capital Accord" the main content, features, the implementation arrangements and the banking...