Information Disclosure And Financial Supervision

Information disclosure is not only a key link for effective financial supervision and improving the governance structure of banks, but also the important driving force to improve operating performance of the commercial banks, and the fundamental premise to ensure a fair and equitable market. The secure and stable operation and risk prevention of the financial system is closely linked with information disclosure. The Asian financial crisis, the U.S. subprime mortgage crisis and other subsequent global financial crisis are highly related to the less transparency of information disclosure in the financial system. The Basel Committee, as the most important organization of international banking supervision, issued a series of standards and regulations on banking supervision in recent years, mainly contains Basel II revised in 2004, Basel II contains of three pillars, and information disclosure is the main content of the third pillar of BaselⅡ. Currently, the information disclosure of Chinese commercial banks is far from standardization, also has very big disparity with the internationally accepted standards, and has an obvious gap comparing with the developed Basel countries, especially in quality and quantity. This state is due to the imperfect system construction, at the same time, it also reflects their governance structure and the management level. Therefore, it is of great significance that researching Basel II information disclosure of Chinese commercial banks.This paper expounds the development of Basel II, discusses the relevant requirement of information disclosure in the third pillar, analyzes the current information disclosure in domestic commercial banks, and compares the state of implementation of BaselⅡinformation discloure between China and foreign countries. This paper chose the advanced international bank information disclosure report to do the case study. We present that gradually perfecting information disclosure system of commercial bank can reduce the financial risks and protect the financial market orderly operation according to information disclosure rules of Basel committee and successful experience from Europe, America, Hong Kong. At last, the paper give some proposals about the implementation of BaselⅡinformation disclosure for Chinese commercial banks, and hope this research provide the reference to perfect the information disclosure system of domestic commercial banks.