Cross-border Banking Supervision Research

Financial globalization has achieved great development in recent years, the multinational bank became the principal part of multinational financial institutes by the capital's transfer frequent around the world which impact deeply the economic development. The supervision over multinational bank is so urgent and complicated that the traditional methods can't meet the needs of the new situation. How to adjust and consummate the provision policy is the common problem for all the market-economy society country. With the further opening in our nation, more and more multinational banks will enter the domestic market. It brings many negative effects on the economy and finance of state as well as the foreign capitals, the advanced experience of management and the brand-new ideal of financial service. The whole banking-system and financial-system will be influenced if there are something wrong with the multinational bank. Therefore the researches about the supervision have the significant theoretic and practical meaning.The thesis is divided into 2 parts.The first part: The supervisory basis of multinational bank and the enlightenment of it1.The theoretical and law basis of supervision, the common choice of policy are discussed in this part and a few typical countries are selected to be classified by different sort of supervision. The theoretical basis of supervision: The disstability of the bank and the dissymmetry of information will make the market lose control. In order to ensure the perfect bank system, the various subsidiary systems must be operated health and release the risks to the minimum. Strengthening the supervision according to the principle of safe, profit and union. The law basis of supervision: the financial law is the prerequisite of financial supervision. Some international regulatory and agreement had been made as well as the local law of host nation for the multinational bank. Especially the《Basil Agreement》and related principles provided the international supervision standard, it is the important guiding document. The general choice of policy: Given the multinational bank's entrance attitude to formulate the appropriate policy. Choosing the appropriate policy according to the present situation of domestic economy and financial and purpose of importing the multinational bank. 2. Comparing and learning from different nations' supervisionAs results of different subjective and objective condition such as political circumstance, financial manage system and financial tradition, various supervision models were created in different countries. Through the compare and research, getting a comprehensive understand of successful operation, helpful experiences and lessons before analyzing and judging it with the historical, developed and dialectic eyesight. Supervision model can be mainly classified three kinds: overall opening model, overall closing model and gradually opening model. The overall opening model is usually adopted in some nations which have advanced economy, competent financial institutes such as Japan, America and Hong Kong. Through the strict law, mature inside-control system and efficient self-management to get the supervision purpose. A few advanced nations which have high welfare and some developed nations take the overall-closing model. Korea is the typical country to take the gradually opening model. The supervision policy was adjusted basis on the benefits and effects provided by the multination bank during the different developed period to bring into the foreign capital, meanwhile, strengthening the competition power and creating the mature financial market.3. What can we learn from the various models.From the different methods we can conclude that the supervision must combine the microcosmic and macroscopic management. Reinforce the law and further the international cooperation, at the same time, more efforts should be put to perfecting the inside-control system, risk management and improving the disclosure of information. T...