The Research Of Bank Supervision Efficiency In China

With the development of market economy, bank plays a more and more important role in the modern economy. How to keep the safety of bank system has become a problem that the domestic and international financial circles pay extensive attention to.According to the agreement signed with the WTO, China will fully open the financial sector in 2007,and the bank industry will also face greater impacts and challenges.The efficiency of bank supervision is becoming more important to the financial system . In other words, taking the efficiency of bank supervision as an independent study, researchers have made lots of in-depth analysis about bank supervision of history and reality for 20 years since reforming and opening policies was carried out.Making evaluation of regulation practice is of great realistic significance for formulating regulatory policies and achieving regulatory objectives in the future.Excessively strict bank supervision usually unilaterally emphasizes the safety of financial system, which results in financial low efficiency.This influences not only the bank itself,but also the further development of national economy.On the contrary, on condition of financial liberalism , relaxing supervision will lead to the frequent emergence of the bank crisis.Therefore, the writer takes supervision strength as the comprehensive variable, constructs the Benefit-Cost Model of bank supervision, looks for the best supervision boundary, creates incentive compatible mechanisms to propose more workable policy for the bank supervision,and weighs safety against efficiency in the modern financial supervision.There is a close relation between the safety and efficiency principle ideas in the field of bank supervision and the development of the modern financial supervision theory.To some extent,bank supervision has inhibited and obstructed the development of bank system,but it has promoted fair competition of bank system on the safe and efficiency foundation.The target of bank supervisions is to encourage fair competition in the bank system and to improve the competitiveness of the bank industry . So as that the supervision authorities cut down the costs and enhance the supervision efficiency.In the text,taking supervision strength as independent variable, the writer tries to explain the supervision efficiency in international scope to certify the credibility of the Benefit-Cost Model, such as the United States, Japan and the countries in the Middle-East.To investigate bank supervision efficiency in China,the writer uses some independent variables of Ratio of Non-performing Loans,Capital Adequacy,Reliability of Information Disclosure,Financial Case and International Rating to test whether the supervision strength is moderate intensity and whether the work,which nears the boundary of supervision,is an efficient economic activities.Through regression analysis,the writer estimates the bank supervision benefit and cost roughly in China, confirming the supervision achievement and giving some policy suggestions on improving the efficiency of banking supervision in China.