A Study On The Banking Supervision System Construction In China

In China, banking is the dominant part of finance. A crisis in banking will spread abroad through credit chain link, which can result in finance crisis. In 1998, the recession of international and internal economy impact on the Chinese banking, which makes the latent problems of the Chinese banking, especially the state commercial banks exposed gradually. Presently in China, the reform of finance lags behind the process of the Reform. And the finance is opening to foreign step by step, so time is urgent to the reform of finance. Since banking is the principal part of finance, it means a lot to reinforce and improve the banking supervision, build up an efficient banking supervision system, control and reduce banking risk.On basis of Basel Capital Accord and the actual situation of banking supervision in China, it is the main context to try to build up an efficient banking supervision system in the article, which goes along in two aspects. The context of the first aspect is benefit-cost analyzing of banking supervision, which involves analyzing the factors that influence the benefit and cost of banking supervision, the cause of inefficiency of banking supervision in China, and corresponding measure and suggestion. The context of the second aspect is to discuss the essential and difficult problems of building up and improving the banking supervision system, involves the study of banking supervision structure, the structure of bank and the restriction of market principle, capital adequacy, the risk forecast system and disposal of bad assets.The context of the article includes five parts. The first part is to introduce system base of banking risk. The second part is to introduce the actuality and develop trend of banking supervision, mainly the Basel Capital Accord. The third includes the theory study of methods and empirical analysis of the banking supervision in China. The fourth part is to discuss the essential and difficult problems of building up and improving the banking supervision system. The fifth part is to study the influence of Internet Banking on banking and banking supervision in China, how to supervise the multinational bank after they acquire national treat.