Foreign Bank Supervision System

In November, 2003, the Law on the Regulation and Supervision of Banking Industry of People's Republic of China was enacted in our state, which laid the basis for the development of the banking regulation and supervision system in our country but failed to contain provisions in principle or in detail concerning the regulation and supervision of financial institutions of foreign capital. In the overview of the current legal framework of regulation and supervision of financial institutions of foreign capital, there exist many issues, for example, the low level and authority of legislation, the lagging behind of rules, inharmonic systems and incompletion of provisions with many uncovered areas, which make it difficult for the regulation and supervision authority to perform its duty in accordance with the law.The regulation and supervision of banks of foreign capital is a part of banking regulation and supervision system, but the regulation and supervision of banks of foreign capital is featured by special respects in contrast to the regulation and supervision of banks of Chinese capital. We shall make reference to the experience of developed countries and world-wide accepted practice to perfect our corresponding provisions in the fields including regulation and supervision objectives, principles and market access. And attention shall be paid to the regulation and supervision throughout the course of market access, operations and market exit, and the focus shall be placed on the regulation and supervision of risks.The regulation and supervision of banks of foreign capital is not only issues of the host countries, but also involves the issue of international cooperation and coordination and the reasonable allocation of jurisdiction and liability of regulation and supervision between the host country and home country. The Basel Committee's agreements establish many principles and rules of regulation and supervision of multinational banks, which exert a comprehensive influence worldwide, represent the tide and trend of the development of regulation and supervision system of multinational banks, and deserve our reference and adoption.This thesis analyzes the current regulation and supervision framework of our country, points out some deficiencies of our legislation on the basis of introduction of detailed practice of regulation and supervision system of banks of foreign capital in various countries and rules established by the Basel Committee's agreements, and puts forward some proposals on perfecting the regulation and supervision system of banks of foreign capital in our country taking into account the influence brought about by China's accession to the WTO.