The Impact Of Market Access Of Foreign-Funded Banks On Chinese Bank Security And The Legal Countermeasures

The international financial crisis in 2008 has brought severe loss to large foreign-funded banks, which has directly or indirectly impacted the security of Chinese banks. As a result, the supervision on market access of foreign-funded banks has become an important issue of the government's concern. In recent years, as foreign-funded banks has grown stronger and stronger, China has constantly improved the legal system for supervision on market access of foreign-funded banks through reference to relevant regulations including the Basel Accord and WTO rules. Nevertheless, it should not be neglected that there are still many defects in the legal system for supervision on market access of foreign-funded banks, so bank safety has become a more and more prominent problem.The paper firstly analyzes the basic problem in market access of foreign-funded banks and bank security, including forms and principles of market access of foreign- funded banks, concept of bank security, and the impact of such market access on bank security. Then, based on analysis of the developing situation of foreign-funded banks in China and the impact of market access of foreign-funded banks on Chinese bank security, the paper draws lessons from the relevant experience of some other countries and consults practice of legislation of international organizations and other countries. According to the defects in legal system at macroscopic aspects including legislative system, legislative principles, legislative technology and specific rules including type of organization, business nature, qualification of market access, procedure of market access, rule of share acquisition, system of licensing fee, clauses of total assets, clauses of prudence and rule of co-operative basis between home country and China, the paper correspondingly proposes legal countermeasures for China to improve the legal system for market access of foreign-funded banks. Hopefully, the paper would help China to fulfill promise on WTO and give full play to the positive impact of market access of foreign-funded banks on bank security, and at the same time minimize the negative influence, so as to contribute to the maintenance of bank security and the sound development of China's banking industry.