Analysis Of The Effectiveness Of China's Banking Regulatory System

The financial crisis is most severe since the 1929, caused by U.S. subprime mortgage crisis. The crisis had a negative impact on the world economy. Financial liberalization and Lack of supervision is considered to be the root cause. The U.S financial regulatory authorities also responsible for the crisis. The crisis is also a comprehensive test of the world's financial regulatory model. Countries considerate the defect of their own regulatory regime, United States, Britain and the European Union have implemented a program of financial regulation reform. As our country, China Banking Regulatory Commission play an important role in preventing the financial crisis spread to domestic banks. In China, bank assets account for over 90% of financial assets. As a result, Economic growth is largely dependent on the stable operation of banking system. Banking supervision is very important. In the past, our banking supervision focused on effects, Ignored efficiency, cost-benefit was not received attention. This article use the theory of effective banking supervision, cost-benefit and corporate governance to analysis the effectiveness of banking supervision. The first part is the theory of effective banking supervision, necessity and the target. The second part is the general analysis of effective banking supervision, factors that affect the effective supervision and build an effective evaluation system for banking supervision from the cost-benefit perspective. The third part is the evaluation of our banking supervision. Finally, propose policy recommendations for the weak point. Particularly focus on the bank's internal governance and external market constraints and internal governance of the regulatory authorities.