Supervision Of The Legal System Of Foreign Banks And Table Study

The entry of foreign-funded banks into Chinese banking sector brings fresh air and pressure as well. While promoting the national economic and financial development, they also consist of various risks. The existence of risks can bring not only failure to foreign banks, but also induce in-stability of financial systems of the host country, or even create a financial domino effect, thus forming threat to the world economic development and security. To avoid these risks and guarantee a smooth and healthy economic operation, the world community has paid more and more attention toward regulation and control over foreign banks. The rapid development of financial market has required the regulatory authorities to establish timely the regulatory legislation, streamline the control on the operation of foreign banks, so as to fit the development trend of foreign-funded banks.The consolidate sheet theory of International Basel Organization bears special meaning and significance toward the compiling of regulatory legislation on foreign banks. The globalization of Chinese financial sector must consider the conformance with international regulatory forms, and the opening of Chinese policy over foreign banks shall also fall in line with the Basel consolidated sheet principle.With the ending of WTO transitory period, China has adjusted further her policy on opening the financial market. Following the commitment on WTO entry, China has promulgated the "Regulatory Code on Foreign-funded Banks" in December of 2006, opening further the Chinese financial market. The release of relative laws and rules has also enabled the optimization of legal circumstance over foreign banks in China. It is proved however that the traditional regulatory means itself cannot form effective regulation over the foreign banks, or opt to duplication of the regulatory work. Therefore the regulatory authorities should pay more attention to the improvement of regulatory measures, while the Basel consolidate principle provides us a very valuable reference, hence having great realistic significance on strengthening and establishment of Chinese laws and regulation on foreign bank.Based on the overall introduction of the rising and development of the International Basel Agreement, this article defines the essence of the agreement, and analyses the reasons of policy shift from branch-oriented to legal-entity oriented policies, by consolidating the actual situation of its entry and evolutionary process in China. After introduction on the consolidate sheet regulation theory, the article explains comments and insight recognition on the related issues, thus reckons the benefits of the consolidated regulatory theory toward the build-up of Chinese legitimate regulatory system on foreign banks.The article combines the specific practice and overviews the status quo of Chinese regulations on foreign banks, and points out the problems in the existing legislations. Based on digesting the Basel theory and its practice, the outline thinking of Chinese legitimate regulation on foreign banks is specified. The article concludes by illustrating the factors for consideration in building such legitimate rules in China and provides some valuable recommendations.