Research On The Policy Of Foreign Bank Supervision In China

At present it is the post-accession era of China's entry into WTO and the banking industry will be open up completely at the end of 2006. The Chinese Banking market pattern and system will be changing enormously. More and more foreign banks are joining in the Chinese finance system, and become one important constituent of it. It can be forecast that more and more foreign banks would chose to enter the Chinese market.Foreign banks'entry is a splendid double-edged sword. It has the possibility to pass or transmit their management risk to China though it may bring the positive influence to our country's finance deepen and the economical development. Through the analysis to the foreign banks'development and the economical influence, it can be concluded that the foreign banks'management in China has brought the new challenge for Chinese government to carry out the effective supervision and management. Specially, Chinese finance market reform is just beginning to reveal the results and the government organizational reform is carrying on now, so that there are many problems for the foreign banks supervision policy. Not the government supervision can not carry out remedial measures when the market is out of order, guide and promote the foreign bank developing in China, but also it may expand the foreign banks risk result from the policy question.In order to insist on the implement of open-up policy while safeguarding our country's bank system security, as well as to standard government supervision function and realize our country banking industry's development, this article analyzes questions of the supervision policy to foreign banks profoundly. It is concluded that the questions include that the supervision body's function are unclear, the policy principle is not clear, the policy basis out of date relatively, the policy content is not full and there is no risk management, and so on. 0n this foundation, through the comparative analysis on supervision policy between the developed and developing countries, integrating with the development trend of bank supervision under the international finance liberalization tide, some improvement proposal are put forward.