Regulations On Commercial Banks' Mixed Activities

Commercial banks' mixed activity has become a global trend with much superiority, such as optimizing bank resources, diverting risks, increasing profits and enhancing competitive ability. China's commercial banks have also carried out mixed activities which develop in depth. However, China adopts a policy of "separate operation and separate supervision" which in principle prohibits banks' mixed activities. There are more and more contradictions between the reality of banks' mixed activities and separation policy .In order to comply with the global trend of banks' mixed activity, China should change its former separation policy. Instead, China should allow and promote banks' sound and healthy mixed activities, strengthen supervision and consummate laws and regulations to make commercial banks' mixed activities advance healthily and legally.According to the status of China commercial banks' mixed activities, upon studying the foreign legislation and practice, this paper analyzes the concept, development trends, dynamics, models, the legal risks, regulatory philosophy. It also puts forward several suggestions on the regulations of China's commercial banks' mixed activities. Excluding the preface and the conclusion, this paper is composed of four chapters:Chapter 1 is an overview of commercial banks' mixed activities. It introduces the concept, development trends, dynamics, model, then moving on highlight the legal risks from banks' mixed activities.Chapter 2 is the supervision regulations of alien commercial banks' mixed activities and the good points we could learn from. This chapter introduces the legal practice of commercial banks' mixed activities in Germany, Japan and U.S, using comparative and positive methods, then points out the good points we can learn from.Chapter 3 is the gaps and omissions of the legal supervision of China's commercial banks under the trend of mixed activities. This chapter analyzes the historical experience and lessons learned from the mixed activities before 1993 in China, and then pay much attention to the supervisor's thinking bias and gaps in exiting legal system.Chapter 4 is the innovation of legal supervision of China's commercial banks under the trend of mixed activities. This chapter points out that China should innovate the supervision thinking, and improve litigation skill in order to strengthen supervision, then gives several suggestions on the regulations of banks' mixed activities for the purpose of making banks' mixed activities advance healthily and legally, efficiently.