Research On Our Country's Foreign Banks Supervision Under Full-scale Opening

In the era of globalization, foreign banks have become more and more important in China's development. However, with further opening to foreign banks' businesses at the end of 2006, the fact that a great number of foreign banks entered China brings about challenges for her economic development and financial security, and presents new requirements for the foreign banks supervision. At the same time, the supervision system of China still has faultiness and problems. Therefore, it is quite necessary and urgent to improve the effectiveness and perfect the supervision of foreign banks in China.To begin with, I review the economics theories on foreign banks supervision and discuss the necessity of foreign banks supervision. As foreign banks are different from ordinary corporations, its negative influence will spread to the Amphitryon, even the whole world, once it goes bankrupt. Thus, foreign banks should be supervised during the admittance, operation and exit. What's more, I expatiate the effectiveness theories of banks supervision, analyze the methods to distinguish between the effective supervision and the ineffective one, so as to supply theoretic support for inspecting the effectiveness of the existing supervision mode and measures.Then, I investigate the effectiveness of foreign banks supervision in China and come to the conclusion that there is ineffectiveness in the supervision process such as market admittance, operation and exit for foreign banks in China. Whereafter, with discussing foreign banks' competition strategies under the further opening to the outside world, I analyze the challenges the authorities will be confronted with then and consider that the existing supervision measures, mode and system will be greatly influenced by foreign banks' operation. Hence, we should envisage the deficiency of foreign banks supervision measures, system and laws in our country-China and realize the urgence of reinforce the supervision of foreign banks.Finally, for all the problems existing in foreign banks supervision, I put forward the proposal that we should reinforce our supervision on foreign banks under the further opening to the outside world. I reckon that we should build a functionality frame for foreign banks supervision in order to deal with foreign banks' mixture management and make the suggestion that we should improve the supervision measures' effectiveness. At last, I discuss on the international coordination and cooperation of foreign banks supervision.