China Cross-border Banking Prudential Regulatory Issues,

Along with China's entry into WTO, and the domestic financial market open totally at the end of 2006., multinational banks are developing more rapidly in China. To our country's financial industry, a large quantity of multinational banks entry into rapidly bring in not only more fierce competition that the Chinese financial institutions have to face, but also the shock to the validity of the system of the supervision of multinational banks in China.. It become a new project of learning advanced experience of supervision, promoting the development of multinational banks, adopting effective measures to control financial risk.This paper discusses prudent supervision of market access and market operation in China through. This paper discusses the supervision subject along with the track of theory and practice analysis. The paper is divided into four parts. The first part refers to the framework of the development of the supervision of multinational banks theory,. This part summarizes the theory, introduces the term of multinational banks and prudent supervision. The second part compares the institutions access polices, the businesses access polices, the Capital adequacy rate management, credit concentration management, and the international cooperation among different countries, which can be used as a source of reference by our country. The third part proposes problems exist in the ideas of supervision of multinational banks, the access polices, the legislation principle, the early warning system, the market restriction and so on by the analysis of the development of multinational banks in China and the situation of the supervision of multinational banks. The forth part puts forward establishing a supervisory framework for foreign banks in China and gives specific suggestions on how to improve the supervision.The paper takes a new supervision frame of the supervision system including prudence, continuance, the cooperation of qualitative and quantitative and with the core of risk supervision. The paper proposes distinctive supervision to distribute supervision resource reasonably. At last the paper proposes that our country should set up cooperation channels in many aspects with foreign supervision institutions to promote the multinational banking supervision at the basic of information sharing and experience exchange.