| Multinational bank, in conception, is defined to be such financial organizations as sprawl their operating branches worldwide crossing territories of national boundary, for the sake of expansion of financial businesses. Multinational banks have appeared to weigh much in the world financial industries since the mid 18th century thanks to the three competing advantages on running resources, global exposures in branches abroad, and internalization, which became the key drives for their rapid growth.Issues on banking regulation paralleled the prosperity. The tumbling of Herstatt Bank, the biggest private bank in Germany in May, 1974, intrigued immediate consequences elsewhere, fueling up the bankruptcy of Franklin Bank ranking the twentieth in U.S. in June of the same year. Bank of England shut down International Credit Commercial Bank in U.K in July, 1991, which rushed forth financial turmoil in all the predominant centers around over 60 countries or areas, suffering hundreds of thousand of depositors. The consecutive collapses of Balin Bank and Japanese Dahe Bank resulted from regulatory violations astounded the financial circle and alerted the authorities with the regulations of the multinational banks in each nation.The regulation of multinational banks, distinguishing in goal, manner, subject and effect, comes harder than the domestic one. Ending in free grasps of profit beyond native legal confinements, multinational banks are striving for innovation at growing risks of contractual breach, money, morality and fluidity. With the IT development, multinational banks are driving money into a quicker transfer via Internet, synchronously handing over the risks throughout the world, which incubated more regulatory difficulties. In order to sustain the macro-policies and preserve the stability and fair competence within the global monetary system, the financial regulatory authorities, as hardening the control at home, are seeking broader cooperation within the international community for effective regulations and risk decrease.Furthering into a deeper opening in the financial field, China began to receive bunches of foreign banks after her WTO accession in particular. By the end of 2001, according to the statistics, 190 foreign branches have been erected in China, totaling US$ 44 billion in asset. Foreign throngs, in no doubt, are pressing the banking regulations in China, which, however, have long been deemed weak.China People's Bank, having been charged with the supervising tasks on foreign banks for years, put up a two-level regulatory mechanism with general and local authorities. China, however, is still defective in regulating foreign banks. Enjoying advanced systems, those developed countries, U.S, U.K, and Japan, for instance, are performing powerful regulations on foreign banks. Some agreements, e.g.《Basle Concordat》, were reached to provide significant guides for the regulations across countries. Based on the analyses of the said systems and regulation principle in consideration of their Chinese applications, this paper serves to propose a gradual transition of the existing regulatory system and practices in China, which suggests an ultimate full coverage in the foreign bank supervision, an exclusive way to meet the requirement of the economic development after China's WTO entry.To improve the foreign bank supervision, we are expected, for one thing, to enforce the limited national treatment at the current stage and take an adequate advantage of Guarantee Clause, Exception Clause and transitional arrangements in WTO clauses, putting reasonable steps into practice to protect the domestic market and the native banks; to push forward such relevant codes as the Law of Foreign Banks and polish the detailed supplements to the existing laws to reconcile the impending plights in accordance with the arrangements for host and guest countries in 《Basle Concordat》, coming to establish a sound system of laws and regulations for practical operations. Secondly, we are expected to giv... |
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