Study Of International Banking Services To Cross-border Trade And Regulatory Issues

Technology progress in computing, and communications is having a profound effect on the way the banking business is conducted as well as on price, cost and risk structures, and it also accelerates the development of international cross-border trade in banking services in which transaction might take place through telephone, fax or the internet. Cross-border provision of banking services can make domestic financial sectors more competitive and efficient .It also poses unique problems to regulators and supervisors in pursuing their policy objective of preserving confidence hi the financial system and protecting consumers. The challenge for policy makers and regulators is thus to minimize the constraints on cross-border trade hi a manner consistent with these policy objectives. As our country becomes a member of the WTO, our weak financial sector is faced with deeper liberalization; at the same time ,that the introduction of foreign capital financial institutions puts forward serious challenge for the growth and development of commercial banks. How to develop trade hi banking services and how to increase the competition ability of national commercial banks is a task for us economical workers to perform..In our country, many studies on trade in banking services are based on the mode of "commercial presence". Reasearch on the international cross-border trade hi financial services are lacking. This paper intents to fill hi the blanks of this area and advises on the development and regulation of China's cross-border trade hi banking services.This paper can be divided into four parts.Part I : An outline of the international cross-border trade in banking services. This part gives an ordinary discuss about the connection and characteristics of international cross-border trade hi banking services and distinguishes it from other related conceptions such as "consumption abroad" and "cross-border capital movements".Part II: Illustrates the development of cross-border trade:At present, cross-border activity is concentrated hi wholesale business and banking services for relatively sophisticated customers. Technological developments and regulatory accommodations will likely encourage further growth in this area. While cross-border activityremains limited in the retail area for a number of different reasons, it could expand significantly in the future in some segments of the market through the development of cheaper and more rapid delivery channels and as consumers become more willing to embrace these new technologies. Electronic commerce involving a cross-border payment of banking can also promote cross-border trade in banking services.Part HI: Regulating Cross-Border Trade in Banking Services. Cross-border activity raises new challenges for prudential regulators because banking service providers do not fall within the easy control of the supervisory authorities hi the host country since they do not have a "physical presence". This means that some supervisory authorities of the host country may choose to rely on the home country supervisor, and the regulation also relates to the supervision of e-commerce, net banking and capital flow.Part IV: China's cross-border trade in financial services and some advices for its development and regulation.