The Risk Of Cross-strait Financial Institutions Regulated Comparative Study

In 2001, Taiwan and Mainland China participated in WTO early or late, in the structure of WTO, Taiwan's enterprise in contrast to Hong Kong's enterprise, are deemed as foreign enterprise, financial institutions are included, according to《The control regulations of foreign financial institutions》, the foreign banks entering into Mainland China can adopt three forms to set up commercial foreign banks as below:(1) foreign sole bank; (2 )the branch of foreign bank; (3 )joint venture bank between Mainland China and foreign countries.Up to present statistics, the commercial foreign banks in Mainland China adopt the form of branch great majority, it is because : (1) regulatory system in Mainland China is not perfect and the branch is convenient to be monitored; (2) the authority of Mainland China can ask the home country of foreign banks to bear major responsibilities of supervision, and ask the head office to offer guarantees; (3 ) The branch can obtain the capital support of the head office , is beneficial to attract foreign capital .But, the ability of living and the safety of operating of the branch depend on two elements: the one is the operating situation of the head office, if the head office is in the sound situation, the branch can obtain well support, to the contrary, if the head office goes bankrupt, the branch goes bankrupt absolutely; the two is the effective supervision of the home country, the home country to monitor the head office takes key effect for sound operating of the branch. And these two elements are out of control for the host country, as a result, many countries take a strict attitude to the branch of foreign banks. Some countries such as Australia,Holland and Iceland's regulations prohibit foreign banks enter into in the form of the branch; some countries even permit foreign banks to enter into in the form of the branch, making strict regulations for entering conditions and operating scopes, for example, American《Statute of Reform of Federal deposit insurance company》makes a limitations for operating scopes of the branch of foreign banks. In order to insure the security of financial system of Mainland China, reduce financial risk, at the same time of the laws permitting foreign banks to enter into in the form of the branch, ruling two security steps for asking foreign bank's head office to provide guarantees and asking the home country bear major responsibilities of supervision.I want to research the distinction of financial risk regulation between Cross-Strait and if Taiwan financial institutions operate in Mainland China, they will face the legalproblems and how to deal with.This article, besides preface and conclusion, is composed of four parts, the maincontents are as follows:Chapter 1, according to the introduce and analysis of the structure of Basel Agreement, and the comparison of the experiences of supervision of foreign financial institutions of major economics, disclosing the developing tendency of financial supervision in the world.Chapter 2 , introduce the intercourse of the financial institutions between Cross-Strait, and Taiwan financial industry face the problems in Mainland China, and discuss the influences for financial industries between Cross-Strait after participating in WTO early or late, lastly, analyze the influences for Taiwan financial industry because of the sign of CEPA between Mainland China and Hong Kong,Macau.Chapter 3, introduce Cross-Strait's integration of financial supervision, and what the laws drafting about financial supervision for transnational financial institutions, in the end, analyze the plan of the integration of financial supervision between Cross-Strait.Chapter 4, analyze the influence for financial industries between Cross-Strait after signing MOU, and introduce the present situation that Mainland China signing MOU, in the end, analyze my opinion about the difficulties after signing MOU, and how to deal with.