Research, Legal Issues Of Supervision Of Foreign Banks Operating

Along with China's entry into WTO and domestic financial market open totally at the end of 2006, foreign banks are developing more rapidly in China. A large quantity of foreign banks entry into rapidly bring in not only more fierce competition that the Chinese financial institutions have to face, but also the shock to the validity of the system of the supervision of capital banks in China. Facing the new situation, our committee of the banking supervises have a new transformation to Foreign bank's supervision way. The supervision will transform with emphasis from foreign bank's market access supervision to the operation prudent supervision. Our supervision about foreign bank may is divided into market access supervision, operation supervision and withdrawal supervision. Before the finance supervises personnel's massive time and energy flower "a batch of organization, a batch of service", while the foreign bank starts doing business the supervision to be more lax. At present the committee of the banking supervises has carried on the simplification regarding the admittance aspect's procedure and raised the examination efficiency greatly. Operation prudent supervision becomes more important when the market access supervision simplified. Through controlling the service operation, the compliance, capital sufficient, the fluidity, the property quality to the Foreign bank operation's supervision, the inside influence finance risk and so on mechanism each targets to be in the regulatory authority are under the supervision, thus guarantees the foreign bank the steady movement and guard financial crisis's occurrence.The other change is that supervision over foreign banks changes from restrained supervision to prudent supervision. Restricted supervision includes management bound, area and interest rate restriction of foreign bank. Restricted supervision is old method. It fails to meet the requirements of China's economy improvement. Prudent supervision is the theory and mean of risk scale. It sticks up for the safe of money market by supervision of capital adequacy ratio, internal control and liquidity. Prudent supervision of China is just the beginning. Interrelated legal system is building now. Learning from the international experiences, it becomes new exploration of banks supervision that strength the control of foreign banks and guard against financial risks.These theses do the research by using the method of theoretic analysis and comparative analysis.There are five chapters in this thesis.The first part talks about the foreign bank supervision outline. After introducing the foreign bank configuration of organization and operation development situation at present, this chapter explains the necessity of operation supervision. The second and the third chapter launches with prudent operation supervision. This chapter elaborated prudent supervision in GATS and Basel agreement, further introduced US, Germany and Britain in Foreign bank operation supervision related prudent supervision concrete legal rule. While the overseas advanced experience are so important to our country. Third part introduced the concrete tool of prudent operation supervision, including capital sufficiency, exterior supervision, and market restraint and table supervision. The first three items are three big props of the "New Capital Agreement of Basel", at the same time the table supervision is one of main principles of the " Core Principle of Basel",therefore this part through Basel agreement related stipulation study some concrete tools.The fourth chapter briefed the foreign bank supervision situation at present. Profiting from the advanced experience internationally our country had mad the related laws and regulations and established the foreign bank prudent supervision legal framework initially, but there are still many insufficiencies in our country's supervision. The fifth chapter proposed the measure and the suggestion about our country operation supervision from the exterior supervision, controlled from the inside the mechanism and the same profession supervision. Meanwhile we must strengthen the banking supervision the interflow and cooperation, only then could comprehensively establish banking prudent supervision laws and regulations system which both tallies with the national condition and adapt to the international supervision tendency, which cover breadth, and which operational strong...