Joint Monitoring Mechanism For Cross-border Banking Research

The globalization of finance has profound and complex impacts onthe world. How to effectively supervise international banks and preventfinancial risks spreading across countries has become a concern for allcountries. The consolidated supervision of international banks by thehost country and the home country is an efficient way to prevent andreduce international financial risks, bring down supervision cost andavoid conflicting of relevant laws of different countries. Since Chinahas chosen to open and internationalize its finance, it will not only get thegains but also take on the risks and shock brought by the globalization offinance. As a result, it is necessary to find the balance point betweenfinancial liberalization and financial supervision, as well as toinstitutionalize coordination and cooperation. As an indispensable partof international cooperation mechanisms of financial supervision, theconsolidated supervision of international banks represents the direction ofthe transformation of the system of financial supervision. Throughanalysis of the rationality and functioning of the mechanism ofjoint-supervision and problems, the thesis explores the root of weakdomino and low efficiency of the mechanism of consolidated supervisionand puts forwards relevant solutions to resolve these problems andchoices for China to participate in the consolidated supervision ofinternational banks. The thesis comprises the Foreword and four chapters. The Forewordputs forward the theme of the thesis and explains the analysis frameworkand research methodology of the study. The First Chapter analyzes the background and theoreticalfoundations of the mechanism of joint-supervision of international banks,and testify the necessity and rationality of the consolidated supervisionmechanism from the perspective of law and economics. Firstly, thechapter analyzes the background of the mechanism of joint-supervision ofinternational banks: with the development of international finance,international banking booms and some new features emerge. Secondly,from the perspective of jurisprudence, consolidated supervision can meetthe demands of order, safety and efficiency in the domain of financialsupervision and reflect the basic jurisprudential values. From theperspective of international economic law, it is indispensable tocoordinate supervision efforts of different countries to avoid blind spotand conflict in the supervision of international banks. From the angle ofnew institutionalism theories, the traditional mechanism of bankingsupervision is in the state of non-equilibrium and a mechanism confinedwithin one country is not the most efficient and economic one.Consolidated supervision mechanism is the inevitable result of thetransformation of the supervision system. The Second Chapter introduces the practice of the mechanism ofconsolidated supervision of international banks and its content. Firstly,the chapter summarizes the substance of the mechanism of consolidatedsupervision of international banks set up by Basel committee, whichmainly concerns the division of the jurisdiction of supervision ofinternational banks. Secondly, the chapter introduces the developmentsof the mechanism of consolidated supervision of international banksmade by bank law in EU, which are mainly characterized by theestablishment of the rule of "the control of the home country". Thirdly,the chapter introduces the role played by IMF, WTO and other regionalsupervision organizations in the practice of consolidated supervision. The Third Chapter analyzes the existing problems of the currentmechanism of consolidated supervision of international banks from theaspects of the basis of cooperation, cooperation bodies and thefunctioning of the mechanism. The chapter also puts forward relevantsolutions. From the aspect of the basis of cooperation, the conflicts ofnational interests have always been an obstacle for consolidatedsupervision. International cooperation of consolidated supervision mustbe based on the balance of national interests. From the aspect ofcooperation bo...