Foreign Bank Supervision Study

Because of China's entry into WTO, more and more foreign banks will run their business in China in five-year transitional period. The Chinese banking will face a larger extent of opening in business realm and regional range, and the competition between domestic banks and foreign banks will be furthered .The entry of foreign banks will, on the one hand, promote the development of the financial industry in our country, and on the other hand, increase the risk of the financial system. In order to dissolve this kind of risk, China should establish a more improved law system of supervising foreign banks which matches the conditions of our country and which is based on the summery of the experiences of supervising foreign banks since the policy of reform and opening and on the experience of the developed market economic nations.This thesis discusses the problems of our country's foreign banks around the topic of establishing a proper law system of supervising foreign banks which should matches the state of China in three parts. The author expounds this problem by making full use of theoretical analysis, substantial evidence analysis and comparative methods .The first part of this article delimits the scope of foreign banks and defines the concept of supervising foreign banks firstly, and then expounds the theoretical basis of supervising foreign banks in terms of economic and law, which constitutes the foundations of supervising foreign banks .The second part mainly analyzes the system of law of supervising foreign banks in advanced countries, and summarizes the experiences of these countries as well as our country for reference of perfecting our country's law of supervising foreign banks. The writer thinks that the principle of supervising foreign banks in China should be transferred to the national treatment of WTO orderly and gradually .The third part is the key part of this thesis. It introduces the status quo of China's law of supervising foreign banks firstly, analyzes its main problems and causes from multiple perspective. On these bases, the author put forward the suggestions on perfecting our country's law system of supervising foreignbanks. From the macro view, the writer think that the guiding principle of the system of supervising foreign banks should be firstly made clear , that is, the principle of laying equal stress on opening and protecting. Secondly, a special Law of Supervision of Foreign Banks should be established so as to complete the law system of supervising foreign banks, and a comprehensive supervising system led by the CBRC (China Banking Regulatory Commission) should be build. Finally, cooperation with the mother countries of foreign banks and with international regulatory organizations should be strengthened. Only in this way can China adapt to WTO 's requirements and can the law system of supervising foreign banks take the positive and important effect on our country's financial industrial and economic developing in a healthy, continuous and steady way.