Bank Supervision System

Legal system of Financial Supervision and Regulation which is set up to regulate operation of finance institutions is a very important part of finance law. The system consists of market admission, financing, deposit insurance system, crisis resolution system and other consequent systems. All these systems work together, act to each other and make up the legal system of Financial Supervision and regulation.The legislation of Financial Supervision and regulation is to regulate power to supervise, to make it clear that who has the power, how to execute the power and the extent of the power, that is to say, the power of supervision is endowed by the law to a proper institution. The object of Financial Supervision and regulation is commercial bank and other finance institutions dealing the business of banking business.There are two supervision models, one is flexible supervision which is used in Australia, Canada and England. The other is standardization supervision which is popular in Japan, USA and countries in Europe.The target of Financial Supervision and regulation is to keep the finance market safe and stable, to protect the depositors, investors from bad operation of finance institutions. The supervisionshall base on the theory of legal supervision, open, equal and fair supervision.To perfect our Financial Supervision and regulation system, we must learn from the developed countries such as America, England, Germany and Japan. Those countries are experienced in the Financial Supervision and regulation. From the research we can found the commonness, such as keep the independence of the center bank whose only function is to make currency policy and establish a specialized institution to execute the power of supervision; independent accountants, auditors and other professions are helpful in the daily supervision;. From the commonness we can discover the deficiency of our system and make rapid progress in our system. Compare with developed countries, our system now pay more attention to the market admission, take little account to the continuous supervision. To resolve the question aforesaid we shall do a lot of work including establishing the deposit insurance system with Chinese characteristic, establishing the discovery system, setting up a flexible supervision system and outside audit system to develop the efficiency.