Study On Parent Authority Supervision To Commercial Bank's Overseas Organs

With the development of globalization and liberalization of financial services, multinational banks'risks are rising gradually. It is not enough to avoid risks and manage multinational banks prudently only depending on one country's supervision. According to Basel Concordat, etc. and international supervision experience, supervision on multinational banks and its'overseas organs should focus on parent authority supervision, also the cooperation and information exchanges of parent authority and host authority. Nowadays, both the China's deepening on financial system reform and opening-up, and the fasting steps of the commercial banks'expanding overseas, call on the strengthening of parent authority supervision.But our country is leaning on making a point of host authority supervision, ignoring parent authority supervision, with little theory research as to parent authority supervision. The paper uses series of theories such as economics, both Marxian and Hesperian, trust and agency theory, combined with comparative analysis and the statistic analysis methods, to apply the banking regulation theory to the realm of multinational banking, also to study the developments of international financial regulation system and the experience of parent authority supervision in world wide.As a core part of analysis, the paper enters on the problem of our country's parent authority regulation to commercial bank's overseas organs, and analysis the efficiency of regulation and supervision from many aspects such as effectiveness and efficiency, macro and micro, system and technology, giving a lot of files and statistics of government and a case of parent authority supervision of China Banking Regulation Commission (CBRC). The paper draws a conclusion that Chinese parent authority regulation is in a basic stance. It needs to be improved in many fields such as banking system, legislation, regulatory content, regulatory technique and means and so on. It is highly effective but low efficiency; macro efficient but micro no efficient, system advanced fast than technique improvement and so on.In the end, the paper gives some suggestion about improve our parent authority regulation efficiency, trying to establish a suited framework of our parent authority regulation. Firstly, we should improve banking regulation system, establish the cooperation system of parent authority and host authority, establish safeguard system and enhance law building. Secondly, we should use The New Basel Capital Accord as akey way to improve regulation techniques and strengthen risk regulation. Thirdly, we must improve the efficiency of CBRC, add more professional personnel, reform the framework, and reduce cost as far as possible.