Foreign Banking Supervision And China's Promotion

With the deepening reforms in the economic and financial sectors and the continuous opening-up, foreign banks successively spread their business and have taken more and more significant position in China. The entering of foreign banks is not only to meet the demand of our entrance to WTO, but also to follow the trend of the financial globalization and the China's banking system internationalization. The banking industry is a special industry, for it has internal instability and great risks, which are aggravated by their overseas business. Therefore, the study of the continuous and effective supervision on foreign banks will have a great importance to maintain the banking stability and financial sound development.Guided by banking supervision theory, this paper defines the concept of foreign bank, reviews its history and points out its economic and legal foundation, supervision principles and two essential supervision models. Furthermore, based on the practice of international supervision on foreign banks, it analyzes precautionary, cautionary and protection measures respectively. Thirdly, combined with the development and supervision of China's foreign banks, it systematically and wholly studies the supervision on foreign banks in China, focusing on market entry, stock-sharing in Chinese banks, RMB business management and internal supervision. It not only historically inspects China's supervision on foreign banks, but also introduces the realities of supervision on foreign banks; not only demonstrates the existing problems of China's supervision on foreign banks, but also puts forward relevant counter-measures sophisticating the system of China's supervision on foreign banks.