Comparative Study Of US And China Banking Regulation Model

There have been a series of fluctuates in the international financial market since 1980s, such as, the Mexico financial crisis, Southeast Asia financial crisis. In these two crisis, a lot of financial institutions went bankrupt. The influence of the subprime crisis which happened in The USA in 2007 still exists. This time, the crisis caused huge lose to the global finance and economy. This crisis initiates the self-examination of the way to strengthen and consummate the banking regulation.People think the US banking regulation is the most perfect system in the world and America is the country in which the financial risk regulation is strict. In China those shunt countries or underdeveloped country, their financial risk regulation is bad faultiness. But which is ironic, global financial crisis happened in America, the country with the most perfect regulation system. There is not financial crisis in China. On the country, China became the leader to resist the financial crisis and the first country that rise from the valley bottom. This situation initiates the thought of people. Is the America banking regulation perfect? Is there some leak or faultiness in the US banking regulation system? Chinese financial regulation system is not perfect, but it has its own superiority. What is its superiority? This is needed to be summarized.In the new situation, how to complete the banking regulation system and how to enhance the efficiency, is the urgent and critical problem faced the regulatory authority. This paper makes the America financial crisis and the status that our country should strengthen the banking regulation as the background. On the base of commercial bank regulation theory, this paper analyses the banking regulation system of the US and China, and summarizes the experience of the tow country, in the last, put forward the advise that to build reasonable regulation system by the way that learn from the international banks and keep our good part.This paper consists of four chapters.Chapter One is the review of the paper. This chapter introduces the background, goal, meaning of the selection of the subject and the way of thinking.Chapter Two analyses the theory of the bank supervision. Freedom and efficiency are principles of the original theory of banking supervision. But when economic crisis happened on 30s, the principles of banking supervision changed. Safety became the new focus of the banking supervision. But if the banking supervision is too strict, the profit of the bank will be influenced. So we should keep the safety and profit of the bank.Chapter Three analyses the history and system of the bank supervision of America. Along with the development of the bank, the US banking regulation system evolutes step by step. By the exploration and accumulation for two hundred years, an effective banking regulation system has been set up. This chapter introduces the main content in the banking regulation which includes the bank admission, bank operation and bank exit.Chapter Four introduces the history and system of the bank supervision of our country. The establishment of our banking regulation system starts lately. But through our endeavor, we have strike up a set regulation system that fits our own national conditions. The content of this chapter is similar with chapter three so as to comparer with the chapter three.In Chapter Five, first, this paper makes an objective analysis on the good and bad parts of the US banking regulation. It point out that the US financial regulation has faultiness in five parts. First, its regulation is short of prospective integrated planning. Second, the duty of the regulator is overlapping. This causes high regulation cost. Third, the existence of many regulators makes the coordination between them harder. Forth, the regulation competition causes lower regulation standard and wasting of resources. Next the paper researches the reasons that the US regulation did not work properly in the subprime crisis. The reasons are excessive securitization, risk cascade under mix operation, and relaxed financial regulation. Meanwhile the paper states the goodness that our banking regulation has showed off in this financial crisis, such as powerful government intervention, insistence on separate operation, cautious regulation ideas, synergetic regulation between the three regulators. In the last, this paper induces the same parts and the different parts between the two kinds of banking regulation, and puts forward the advice to build reasonable regulation system.