International Capital Flows And Bank Supervision

Banks, one of financial intermediary institutions, play an important role in economic behavior, so they are supervised rigorously. Especially after 1980s, bank failures have become quite common. Thus, they have attracted economists and the public widespread. At the same time, the world has become a"global village"in the process of economic globalization, and the traditional approach to guard risk that one country control risk singly cannot fit into development of economic globalization. So we must establish the cooperation of bank supervision to make banking stable and make bank supervision environment good.The paper falls into six sections:The first section is preface, which consists of the research backgrounds, purposes and approaches. International capital flows are one fact of globalization, and their development bring dilemma to bank supervision. Even they make bank supervision fail. However, studies of bank supervision failure indicate approach to guard risk that one country control risk singly cannot fit into development of economic globalization, so it is necessary to establish the cooperation of bank supervision. The further analysis goes as follows: firstly introduces the history of development of international capital flows; secondly analyses the influence between international capital flows and East Asian bank industry; thirdly studies the East Asian bank supervision failure, and gives some suggestion about cooperation of bank supervision; Finally, the methodologies adopted are dynamic analysis, historical analysis and induction contrasts.