China's Wto Accession, "analysis, Government Regulation Of Foreign Banks

In economic and financial globalization environment, the regulation on foreign capital banks constitutes an indispensable part of a country's financial regulatory system. Before entering WTO, Chinese regulation on foreign capital banks mainly included the restrictions on business scope and the management of market admission. After entering WTO and with realizing its WTO commitments, China has gradually opened up its banking industry, i.e. to have removed the region and customer restrictions for the banks to handle foreign exchange business and to reduce the region limits for them to deal with renminbi business step by step. It will inevitably pose new requirements to China's macro-financial regulation and control. The banks' entry into China would make us confront crucial challenges under the current conditions that our financial system reform is far from perfection, our banking falls behind developed countries and our market structure is not healthy. Therefore, it's an important subject of matter for us to realize the efficient regulation and sustain macro-financial stability.By analyzing the banks' present situation, prospects and possible influence on China in the future, this essay is to find out, for the government, how to get hold of the opportunity of WTO entry, promote its regulation system reform and economic development and realize efficient supervision on the base of its own 'characteristics according to international practice and by drawing on other countries' experiences. The article consists of three parts. The first part is about the banks' current situation, features, China's WTO commitments and predictions of their prospects in the next five years after analyzing their business advantages. The second part is the analysis of new challenges that the government will confront in banking regulation. Firstly, with Marx's economic theory, western theories and global practices, the essay displays the necessity of banking regulation. Secondly, it produces the urgency by analyzing some relevant questions and new challenges. Finally, it outlines WTO regulatory content. The last part is about solution from three aspects. First, now we should adopt Gradual Pattern and Slightly Coordinated mechanism. Second, we should set up and perfect the coordination system among the People's Bank of China, the Security Regulatory Commission and the Insurance Regulatory Commission to tighten up the regulation on the banks that operate mixing business.As far as the trend is concerned, we would shift from separating to mixing regulation with the development of the banking and the global mixing-operation stream, separate financial regulatory function from monetary policies of Central Bank's and establish a united financial regulation institution. So the current steps are to found and perfect regulatory system, operational system, risk-calculated system and create the efficient regulation conditions, etc. Third, we should perfect the laws. The Regulatory Act on Foreign Capital Bank should be drafted quickly. Related laws should be supplemented and remedied. We should take full use of the period of transition, narrow the gap between China's banking and other countries' and lay a foundation of realizing national treatment for foreign capital banks in China. These measures mainly concern market permission and business management, such as controlling the entering speed and region distribution, establishing five-level-management rule and credit-rated law, tax reform and so on. The new point is the corresponding solution to the government regulation based on the systematic analysis of the urgency and necessity of banking supervision by Marxism theory.