Research Of Regulation Of Private Bank In China

Along with the deepening of China's open and reform, private banks are the tremendous impetus to the promotion of particularly rapid growth in China's economy, especially in the private economy. Private Banks have also played an important role in improvement of financial systen.Based on comparative advantages on private banks and a series of viewpoints of scholars in banking regulation,the development of private banks are analysed. Then,the use of financial regulatory bodies for private banking regulation is expounded: effective control of non-performing loans, guarantee that the capital adequacy ratio and improve the regulatory environment.The paper points out a series of questions in China's current private banking regulation,for example, the law system of regulationis not perfect,the deposit insurance system is not established, official and non-official regulationis are imbalance, market access and external regulatory focuses are not obvious. Through basic measurement model, multiple linear regression equation to the private banking regulation is estimated and tested. In view of the lower overall capital adequacy ratio and non-official regulating of unsound reality, the paper introduces cross - variable and uses the expanding measurement model to estimate and test parameters again. Finally, the author proposes measures include:the loose of market access for private banks, the establishment of a deposit insurance system, the development of non-official regulatory strength.