Study Of The Transformation Of Commercial Bank Supervision Mode Under Mixed Operation Trend

Banks are the center of a nation's economic and financial operation. Along with the process of formation of supervision over banks , to full-scale operation in banking supervision, till loosening in banking supervision and a new round of supervision being carried out, the mode of bank supervision have been changing relatively. This changing has always been influenced by various economic theories of every time.The People's Bank of China was responsible for the operation and supervision of banking after liberation. After the revolution and opening of China professional banks were restored or founded. Since then, the People's Bank of China started to be solely responsible for the composing of monetary policies and supervision of banking. By the nineties of the twentieth century and based on the situations of divided operation in banking, our country gradually set up the divided supervision mode. Now, a trend of mixed operation in banking has emerged, so the present supervision mode leads to co-existence of overlapping in supervision as well as vacuumed areas in supervision, illegal charging, being high in cost, unbalanced distribution in supervisory resources, the impediment in information flow and sharing in supervision and hindrance against banking innovation. These problems have brought about serious challenges to divided supervision.Revolution in banking supervision in the nineties of the last century in the U.S.A., the U.K. and Japan brought revelations to our country's revolution. The revelations are as follows: supervision mode is a product of a certain historical period and it is closely related to a nation's conditions; the monetary policy function and banking supervision function of the Central Bank tend to operate separately ; separated supervision should be transformed to united supervision as well as organizational supervision should be transited to functional supervision; emphasis should be put on information communication and sharing in supervision and further more a co-ordination pattern should be set up among all supervision offices.The present supervision mode must be transformed. Principles as banking risks should be avoided, supervision cost should be lowered, supervision resources should be optimized and supervision efficiency should be raised must be strictly observed when new supervision organizations are set up. These organizations will be responsible for united supervision, optimizing supervision resources, realizing common access to information, setting up a disciplined cooperation between the new supervision offices, the Central Bank of China and all relative government offices, in addition, providing necessary legal protection to the new supervision so as to realize supervision objectives ultimately.