Commercial Bank Information Disclosure Of The Legal And Regulatory Research

Commercial banks are the oldest and most influential financialinstitutions. With the purpose of maximizing profits, commercial banksoperate based on the different financial assets and liabilities, withmulti-functions. They are independent with firms and take animportant role in financial system, attracting wide social attention. Dueto the recent financial crisis and the tightening of banking regulation,the operational stability of financial banks becomes heatedly discussed.The disclosure of commercial banks without doubt serves as a channelof regulation. In the finance theory, considerable progress has beenmade while in the jurisprudence, more efforts are still needed. Thisresearch takes the judicial perspective to approach this topic. Underthe background of judicial resource allocation, designing themechanism of disclosure is to design the mechanism to regulate theoperation of commercial banks. The thesis aims to take a look at the information disclosure,adopting the methods of positive research, comparative research,focusing on the Basel committee, comparing the gaps between Chinaand western countries. We want to draw some useful conclusions forthe commercial banking regulation in China. The chapter arrangementis as follows: Chapter 1, commercial bank and its disclosure. This chapterconcentrates on the basic theories of commercial banks and disclosureas the foundation of the following discussions. The section 1 will give adefinition of commercial banks. Commercial banks have the feature ofpublic credit firms and financial institutions. Its impact on financialmarkets makes it different from normal firms. The requirement ofdisclosure origins from the shock of financial markets in many of themajor developed countries and the bankruptcy and the socialinstability. Regulatory authorities in many countries all strengthenedtheir activities. The researches of Basel committee also reveal thateffective disclosure can act against the financial risks. Our majorconclusions are first, smoothing the risks is the internal needs ofcommercial banks, disclosure as a prior mechanism can guarantee thegood-faith operation of commercial banks. Second, ad a publicinstitution, disclosure is necessary for its high-liability operation. In thesection 2, we introduce the economics foundations of disclosure andemphasize the principle of justice. Economics shows that effectivedisclosure is the outcome of competitions and the deduction of welldefined property rights. Chapter 2, commercial banks disclosure and internationalregulation. This chapter focuses on Basel committee and analyze thedisclosure provisions in Basel II, in order to reveal the experiences ofmature banking regulations in other countries and aid the legislation inChina. The SOX act in USA leads to many discussions about corporategovernance and reporting systems and the adjustment of regulatoryauthorities. How to punish the management who manipulate thedisclosure and mislead the public becomes a major concern, also withthe balance of disclosure and protection of commercial secrets. Section1 focuses on the historical background of Basel committee and Basel II;section 2 focuses of the banking regulation in New Zealand andSingapore and section 3 focuses on the meaning of USA SOX act forpromoting the legal protection. Chapter 3, the disclosure regulation framework for commercialbanks in China. The analyses in this Chapter are based on theconclusions of last chapter. The aim is to reveal the problems in presentsystems and give out some suggestions. Section I focuses on the historyof banking regulation in China. From the first disclosure of ShenzhenDevelopment Bank, the disclosure in China develops from publiccommercial banks to all commercial banks. Due to the shortcomings ofregulation system, the disclosure standards do not match, thedisclosing contents are not enough, which all seriously affect thequality of disclosure and reduce the power of authority. To deal withthis, section 2 suggests to balance the comprehensive disclosure andmaterial examinations, namely to achieve properl...