Developed Countries On The Foreign Banks And Its Implications

With the deepening and developing background of economic globalization and financial liberalization, every country hopes to introduce the foreign banks to develop its own economy and serve for the financial development. However, the introduction of foreign banks itself can be a two-blade sword, which serves for the economic development in the guest states and at the same time brings about challenges to the stability and safety of financial market. It could also touch off world-wide finance crisis. Therefore, the authorities with the regulations of finance all strengthen the measures to control the foreign banks. Foreign banks take advantage of the reform and opening, especially when China joined the WTO in November 2001, with the promise of lifting the limitation for the entry of foreign banks and canceling restrictions over region and client on foreign banks operating on RMB service by the end of 2006.Under such circumstance, China will face the new supervision over foreign banks. U.S. and U.K., have a comparatively strict and perfect supervision regime over foreign banks, of all the western countries, and they are also successful examples, which represent and typicalize the western finance supervision. Therefore, China should study and learn from their successful experience of the two countries' finance supervision on foreign banks, combined with the current development of China's banks. China can inquire into its countermeasures to supervise and improve its supervision regime, with the expectation to standardize the operation of foreign banks, reduce the financial risks, and protect the interests of the depositors.This thesis, applying to Marxism dialectical materialism as basic method, combined the theory analysis with positive analysis, exploring the concerning countermeasures suitable to China's supervision over its foreign banks. It contains four parts.First of all, the paper starts with the definition of the concept of foreign banks supervision. It provides some premises for the thorough analysis research through the definition of foreign banks, bank supervision and foreign bank supervision.Secondly, it, with an eye on economics, analyses the cause of the fast development of foreign banks in developed countries, which brings about the supervision essentials over foreign banks.Thirdly, the paper offers a clear and positive analysis of western foreign banks supervision. This part investigates the historical evolution of the countries' (U.K. and...