Realistic Thinking On Banking Supervision In China

Banking is the blood of modern economy, which runs healthy or not has a significant effect on the national economy. Many facts show that the crisis of banking itself often causes to the huge side effect of national economy, even leads to the whole decay of it. It is the case to China. At present, banking exists many serious problems. As a lawyer of economic court, I found that the banking cases cover over forty-five percents of the economic cases. Hence, in order to maintain the running calmly, the effective supervision of banking becomes an important and realistic issue.The dissertation is one of a guide of these problems. Because we pay much attention to the specific problems of banking supervision, the logic is obvious and simple. It includes the description of the related theories, presenting problems, analyzing the restrictive conditions and the solving approaches.In Chapter 1, special characteristics and insatiable features of the banks are analyzed theoretically in financial systems. The history of banking supervision and the realistic reasons of enforcing financial supervision are discussed. It analyzes the theoretical interpretation of the financial supervision. Because the dissertation is centered on banking supervision, it should provide more persuading reasons for banking supervision in theory.The problems existing in banking business lead to the unhealthy of the whole financial system and the risk accumulates step by step. These problems are the result of false management of the financial institutions. But it is the defect of the operating and marketing systems in our present banking supervision system that makes the situation even worse. Therefore, in chapter 2, the current situations of banking supervision are analyzed. The dissertation exposes the supervising principles, the goal and put forward measurements. Especially, the system of eternal supervision, the inefficient information exposing systems and the supervision over foreign banks are discussed in detail.In chapter 3, the dissertation put the emphasis on how to construct new patterns of supervision in our banking business in new situation. Many approaches are put forward to solve the problems presented in Chapter 2, including establishing preventive supervising measures to avoid the previous situation dominated by supervising functions but not affected by other political purposes, perfecting theexisted structure of banking supervising or establishing more advanced supervision means such as the system of deposit insurance.With the accelerating step of economic gobalization and marketing and the entry into WTO, more new problems will appear in banking supervision. In order to exploit new ways of banking supervision, the international co-operation are researched in the financial supervising field. It includes two aspects: One is the influence made by rules on capital sufficiency ration mentioned in <>, the other is new requirements brought by risk managing principles in <> . In a word, our banking supervision must follow the concerned international convention, and in this way it will be approved finally. In addition, it deals with new ways to reduce pressures brought by financial deregulation under the presumption of strengthening the basic banking supervision systems. The tendencies of future banking supervision such as supervision of financial innovation, supervision of overseas branches, supervision of amalgamation and purchase and supervision of e-banks are put forward.