Supervision Of Foreign Banks In China

In the economy globosity era, the entry of foreign capital bank is one of Chinastratagem decision in order to develop economy. At the same time, facing the moreopen economy, Chinese economy and finance safety are challenged by the entry offoreign capital bank, thereby Chinese supervision of foreign capital bank is called forin more aspect. However, currently the supervision is still not perfect, and there are agood many problems in it. So it is very essential and pressing to perfect thesupervision. Firstly this paper defines the concept of foreign capital bank, and discuses thesupervision essential with economy theory. Foreign bank is not the same as foreigncompany. Because foreign company will influence little when they irregularitymanage or close down, while foreign bank will influence Amphitryon country eventhe whole world. So we must supervise the entry and operation of foreign bank inevery aspect. At the same time, for the commonality product character of financesystem and the information immaturity in the course of foreign capital bank operation,it is very important for increasing the finance money market efficiency and criterionmoney market order that our government strengthen the supervision. Secondly, this paper impersonality analyzes the foreign bank challenge toChinese finance combining the fact of the foreign bank developing in China. By rightof grand competition strength and management experience, foreign bank will impactsuch as national commercial bank manage, and solicit finance risk owing to lackingsupervision experience. Thereby we must envisage the shortage of foreign banksupervision in policy, system, code, means and personnel diathesis. Thirdly, this paper pertinence put forward some suggests. China shoulddefinitude the supervision policy according to WTO rules and combining Chinafinance development and supervision fact. Such as innovating supervision system,following Basel agreement and perfecting supervision code, adopting manifold formsof supervision fashion, consolidating information issuing, strengthening thecooperation with foreign capital bank national supervision authorities, changingsupervision ideas and regarding supervision persons. This paper is divided into four parts: the first part introduced basic theory offoreign bank supervision. First of all, the paper attempts to expound the definition offoreign bank supervision, and then introduces three factors, basic policy and mode.Finally it analyzes the necessary of supervision in the angle of economy. The secondpart expatiate the new problems Chinese finance are faced. On the basis of introducingforeign bank developing actuality in China, the paper analyzed the challenges Chinesefinance is faced. The third part analyzes the supervision problem in policy, system,code, mode, and cooperation. The last part put forward countermeasure aiming at theseveral problems.