On The Improvement Of The Legal Mechanisms For The Supervision Of Foreign Banks

With China's accession to the WTO, foreign banks, mainly supervised by China Banking Regulatory Commission, are becoming an important component of China's financial setup. After China's entry into the WTO, its supervision law on foreign banks should comply with the rules of the WTO. Because of the defects of China's current supervising system, China should upgrade its legislation by studying the WTO's rules to protect its fragile banking industry. Even though the supervising systems in Britain, the United States, and Germany are widely different, these countries are celebrated for the soundness of their systems. Comparatively, China's supervising law has much to be desired. Therefore, on the basis of drawing on these countries' experience, China's supervising law can be improved respectively in two aspects: classification and rating on the whole; specific legal mechanism.