Banking Supervision International Comparative Studies

Banking industry is the core of modern economy and plays an important role in a country's financial system. Its sound operation is a key factor to the safe running of financial system. During the past several years, with the further development of financial deregulation and financial innovation, financial industry, especially bank industry has been facing more and more risks, which affects the stability of economic development. More and more people begin to concern about the method to strengthen supervision on banks in order to maintain economic safety and stability. Basel Committee, as the authority in banking supervision, has taken actions and begun to supplement and revise Basel Accord of 1988. On June, 26,2004, Basel Committee published the New Basel Accord which provide a new standard and method for international banking supervision. Some developed countries, such as U.S.A., U.K., Japan and German, have also reform their banking supervision systems to meet the development of financial globalization.After 20 years' reform and development, banking supervision system of China has gained great achievements. However, there are still some problems, such as the low capital sufficiency, the inefficient information exposure system, the backward banking supervision measures, etc. With the gradual performance of the promises we made while entering WTO, banking industry of China will be fully opened up to foreign countries by the end of 2006. With great advantages in management, technology, and human resources, the entrance of foreign banks will surely bring much impact to China's banking industry and will also be a great challenge to the banking supervision system of China. Under such situation, it is urgent for us to build an efficient banking supervision system.This paper starts with the introduction of banking supervision, and then presents the main principles of Basel Accord and the advanced banking supervision systems of developed countries. After analyzing the current situation of the banking...