Research On The Chinese Bank Regulatory Institution Based On The SOMEI Model

Since the 1980s, the world financial market shows tendency of instability, many regional financial risks breaking at times, which shocks the economic and financial stabilization of the world. As the base of the financial market, banks are exposed to the financial risks. Thus, to strengthen the regulation of bank industry is becoming an important part of the economic life in every country. As for our country, with the establishment of Bank Regulatory commission in 2003 as a symbol, the bank regulatory is experiencing a basic change. That is, the central bank ceased to supervise the bank industry, while the Bank regulatory Commission took on this task. However, our current regulatory institution has many disadvantages, as it is developed from the planned economy and has a short history. With further opening up to the outside world of the financial industry, it is urgent to establish effective bank regulatory institution which is in line with the new situation.Though the bank regulatory institutions vary in different countries, we can still get a whole idea of the various regulatory institutions and track down their similarities. Starting from the perspective of the improving regulatory efficiency, this essay makes researches on the regulatory institutions of our commercial banks, employing the methods of systematic analysis, comparative analysis, empirical analysis and standard analysis.The essay is made up of four parts. The first part is to give an introduction of the history of the western bank regulation and related theories——finance frailty theory and the public interest theory, which provide theory support for necessity of bank regulation and of Chinese bank regulation improvement. The second part is to introduce the objectives and principles of bank regulation. The SOMEI model, S (Subject)—O (Objective)—M (Means and Methods)—E (Environment)—I (Information structure) is put forward. This model is made up of five elements: regulatory subjects, regulatory objects, regulatory means and methods, information structure of regulatory institutions...