Research On Chinese Banking Supervision

Banking supervision is the combination of banking controlling and banking management. Bank system is the core of financial system. Its proper operation is the focus of financial health, while banking supervision is crucial to banks proper operation. So banking supervision plays an important role in financial stability and development. Since the 90s' of 20 century, all kinds of financial risks have strongly effected the development of the world banking. Not only has the high frequency of the financial crisis brought the supervision of the banking great change, but also the mix of the kinds of finance and the globalization of the world economy.The New Basel Capital Accord is the result of the development and competition of the international bank, which is about supervising the commercial banks' capital. The Basel accord (edition 1988) is the first one to norm the capital of banking and draw up the unite rule for the competition in all over the world banking. With the finance innovation and risk management deepened, the Basel accord need up dating as well. From 1999, Basel committee on banking supervision had announced the new accord draft three times aiming for the new accord, and the ultimate accord has been carrying out from the end of 2006.Compared with the old one, the new accord is more scientific, detailed and reasonable. It consists of three parts, this is to say the lowest capital requirement, supervision and inspection, market discipline, which relate and restrict each other. The publication of the new accord indicates that the supervision on international banking capital is developing and promoting now, and at the same time commercial banks must manage the capital more and more seriously, continuing to enhance the capability of risk management. To implement the new accord will have different influence on international banking.As one of international liquidation countries, China must adjust some bank items according to the structure of the new accord. Therefore, the new accord will not only bring us a good many new ideas and measures, but also bring our developing banking lots of eager reforming missions because of the disadvantages of our banking system. To our country, the theory and practice of banking supervision develop too late and incompletely. With our country's entry into the WTO and opening up deeply day and day, Chinese economy has been incorporating with international economy day by day, and Chinese finance has become a part of global finance progressively too. Chinese banks and their branches around the world and branches of foreign banks in China influence each other; our banking industry will face more and more risks. In order to supervise and control these risks effectively, studying the international practice conscientiously and supervising Chinese banks according to the general game rule are very important and significant.The basic logic of this thesis is as follows: according to the demands put forward by the second mainstay in the New Basel Capital Accord, and in the light of the supervision standard and methods, the thesis analyzes the situation of our country's banking supervision, points out the gap and problems, finds out the reasons cause these problems, and then puts forward to set up a effective banking supervision system.This thesis consists of four parts:Part one is an introduction, which presents the backgrounds, significance, methods and the structure of the study.Part two is to introduce the New Basel Capital Accord, on the basis of a brief introduction of the Old Basel Capital Accord. This part analyzes the development of international countries' banking supervision at first, then presents a detailed introduction of the new demand for banking supervision put forward by New Basel Capital Accord, i.e. the second mainstay--supervision and inspection.Part three gives an overview of the evolving process of banking supervision in China, analyzes the problems exist in our country's banking supervision at length according to the New Basel Capital Accord, finds out the reasons which cause these problems , and points out that implementing the new accord will have a series of influences on our banking supervision.To help our banking to solve the impact of the new accord in the limited time, the froth part brings forward some suggestion and countermeasures according to the above influences. For increasing and perfecting the ability of bank supervision, it is necessary to take measures from two parts, i.e. strength the exterior supervision of the supervision authorities, and set up the supervision on supervision authorities.