The Role Of Government And The Regulation On The Foreign Capital Banks

Shocked by financial global integration nowadays, banking supervision is trapped in every kind of problem, therefore the task of how to supervise on the banks with foreign capital efficiently attracted supervisors attentions all over the countries mostly. The supervision on foreign capital banks of China seems to be still very shallow and superficial, especially from the aspects of ineffectiveness, out of date conceptions, short sighted views, lacking legislation supporting, and insufficient feasibilities. Along with China's further development as well as been the member of WTO, facing the more and more complex financial environment, the weak supervisions becomes the disease, and accordingly, how to make the correct and powerful public policy to supervise foreign capital banks to against financial risk doom to be a important core task for Chinese government.The basic function of government is to provide the social system environment and make public policy. Any financial activity is carried out under some certain specific system structure, and the certain specific system management lines out the financial activities, moreover the specific system structure takes premise of the financial supervising. The function of our government to finance field has been changed a lot with the development of banking finance. In the year of 2003, China Bank Regulatory Committee (CBRC) was founded and this became the milestone of further system reforming on the finance circle.Banking is the core of finance, the cash and debt related special production, together with the situation of information asymmetry both overspread banking risk, accordingly banking supervising generated. Generally speaking, most countries focus their banking regulatory on marketing entering, market operating and marketing exiting. Being a basic public policy, financial supervising is established to protect benefit of consumers, to save market confidence, to raise financial market efficiency, to guarantee the security of state economy and to maintain the fair competing market environment.Mainly from the angle of the role of government, taking the supervisions on foreign funded banks as target, using the methodology of objective and evaluation, analyzing the policy's origin and key points, the past and present, China and out side China, theory and practice, the author seeks to discuss the negative in supervisions of three links, market access, market operation and market withdrawal, explore the flaw of related law and regulations, make policy suggestions on foreign funded banking supervisions.