The Research On Improvement Of Commercial Bank Off-Balance-Sheet-Activities Supervision Legal System

Since 80 decades of last century, off-balance-sheet activities have taken the most important role in commercial banks, even replaced the core status of deposits and loans business. Though the OBSA bring great profit, they bring risk to banks which may lead to the bankruptcy of the banks even the vibration of the whole economy system. The whole world paid attention. The New Basel Capital Accord issued by Basel Committee regulated the OBSA by capital adequacy ratio, information disclosure and authorities supervision to resist the risk of OBSA. USA in order to strengthen the supervision of OBSA made legal regulation of market access, capital adequacy ratio and disclosure of information. In an increasingly competitive banking market, the banks'profit margins are getting smaller and smaller, Chinese Banks to seek survival and development in the competition, developing OBSA will become the only choice. At the same time we must pay great attention to the supervision of OBSA because of the huge damage of the OBSA. In Chinese legal system the regulations of OBSA are lack, such as supervision target is wrong, the responsibilities of regulatory agencies are unclear and the specific regulation is far behind development of OBSA, especially market access, capital adequacy ratio and information disclosure legal regulations are far behind the international standard. In this paper, with respect to relevant provisions of The New Basel Capital Accord, writer advised to innovate the current legal system to regulate the OBSA. First, we should set up the target of security, efficiency and transparence. Second, we should build a supervision system which is consist of Banking Regulatory Commission, The People Bank of China and Security Regulatory Commission. Third, we should constitute material qualifications of market access. Forth, we regulate strict capital adequacy ratio which include the credit risk, market risk and operation risk. Fifth, we should strengthen the supervision of risk management in commercial banks. Last we should reform the information disclosure through information generating, information processing, information publishing and information feedback sectors. In information generating sector, by improving the existing Accounting Law and strengthening the banks internal risk rating system we can ensure the accuracy of accounting information and risk information. In the information processing sector, through strengthening the function of external audit, we ensure that auditors issue a fair and true audit reports. In information publishing sector, through the clear principles, standard form of information, rich content, right procedures for information disclosure we can improve the quality of information disclosure. In the information feedback sector, we should intensify the penalties of illegal information disclosure...