Economic Globalization And Banking Supervision

The economic globalization has dominated the international economic development since the 1980's, owing to the rapid development of world economy and a continual strengthening of the cooperation among various countries. The development of the economic globalization has given a direct impetus to the globalization of international finance. The development of financial innovations in the banking industry also carries the risks in the banking business inevitably. However, with over a decade-long bitter experiences of the financial crises occurred in many countries, the governments and financial supervision authorities throughout the world are alerted to vigorously strengthen their supervision over the bank industry Therefore it is necessary for us to study the financial supervision in the new situation; so as to provide advises for the supervisors in our banking industry. The article is divided into four chapters. The first chapter----Supervisory Theory and Practice on Banking Industry in economic globalization. This chapter mainly studies crises and risks of the banking industry in .the economic globalization. The financial crisis is a global issue, which may occur not only in developing countries, but also in the developed countries. In accordance with financial crises at different stages, supervision authorities in different countries have practiced some valuable excises on banking supervision, especially the banking supervision inthe course of the economic globalization. This chapter has also reviewed the theory of management and administration of the banking industry in the economic globalization and the higlilighted the new trend of the supervision on the banking industry in the economic globalization. The second chapter elaborates the problems encountered in the supervision practice on banking industry in the economic globalization, and analyses the root of the problems. Among many problems encountered in the process of the economic globalization, the author has chosen three representative aspects related to the economic globalization for study, such as the business multi-element problem, international capital flow andsupervision issue in the transnational banking induStry. Tbe multi-elementand innovations in the banking industry have altogthcr made thesupervision more comP1icated. The impact of intemational caPitaI flow onthe banking industry has made it more difficult in the po1icy formulationand lmplemedeion. The development and business intemationaIiZaion oftransnational banks has forged special riSks and compIicated thesupervision.The third chaPter is the focaI point of this articIe. It mainIy centeredon the problem shOOting, and study of the economic globaIitalion andbanking supervision system. The focus of the discussion i8 pIayed on thesupervision principfor of financiaI safety and steop OPeffition, thebuiIdingup of multi-IeveI and aII-round suPervision frames as welt asthe intensified cooperation on internatonaj suPervision in the bankingindustry This chaPter aIso discusses the aPPrOPriate way of setting up the....supervision system on the banking industry from the view points ofsupervision principIes and its frameworks as well as the intemationalsupervision cooperation.The last chaPer retums to the issue of financial suPervision frOm thetheoreticaI study of the first three chapters, and exPIores how to build upthe supervision system of China's banking industry in the process of theeconomic gIobaIization. Proceeding from the Present situation nd existingprobIems of China's banking suPervision systffo in the economicgIobaIization and intemationaI finance integr8tion, this chaPfor studies therecons...