Research On The Legal Supervision Of City Commercial Banks In China

Financial industry plays a key role in a country’s economy, and it goes without saying that it plays an important role in the economic development. Currently, the world economy tends to be global, and the financial industry connects the world closely as a whole. It influences all levels of a country, including economic, cultural, political, and social. China’s City Commercial Banks, as the last institutions emerging in China’s financial industry, have played an important role by taking advantage of closing to community residents, improving local economy and serving small&medium enterprises. China’s City Commercial Bank is the first one of China’s banking institutions to perform joint-stock reform, meanwhile, establish the internal control and risk management system for small financial institutions and carry out the cooperation between the city commercial banks. China’s City Commercial Banks move forward steadily by exploring effective credit mechanisms and internal&building and improving IT system using external resources. Today, China’s City Commercial Banks are bank-groups of vitality strength and good prospects. Especially, during the period of rapid development, City Commercial Banks serve all the country by breaking geographical limitations, and some social services of the City Commercial Banks have gradually replaced the role of the large state-owned banks and joint-stock commercial banks, and become an important backbone of the people’s livelihood service force.China’s City Commercial Banks which based on urban credit union have a nearly30years’ story. During the period, China’s City Commercial Banks perform development system, innovate development pattern and focuses on local economy and people’s lively hood. City Commercial Banks have survived and become a emerging that service local economy. However, City Commercial Banks are low quality due to its poor original qualifications, such as, huge original burden, low market&social acceptance and local government intervene. Currently, China’s City Commercial Banks’ credit assets loss happens, non-performing loan ratio has been risen and systematic risk severe. All of them indicate that risk management&control of China’s City Commercial Banks needs to be strengthened.Today risk management&control is still the key point of City Commercial Banks, and also the important part of urgent transition. City Commercial Banks must take measures to avoid and eliminate above incidents, especially for cases prevention during the slowdown in economic growth. Financial regulations are always required and a sound financial operation of the system and the legal and regulatory framework, and supported with a set of management system that comply with the law of market economy, if financial institutions play its economic function effectively and try to keep a steady running. As the most important small-bank of financial institutions that serve local economy and people’s lively hood, City Commercial Banks constantly improve the existing laws and regulation systems. Legal supervision and risk management is the fundamental force of City Commercial Banks’development.Due to enormous influence of City Commercial Banks and fierce competition, how to strengthen the legal supervision and risk control, seize opportunities, meet challenges, and continue to promote better and faster development has become an important research topic. In this context, study the operation and development of the City Commercial Banks, either from the advantages for the development of City Commercial Banks, or from the City Commercial Bank in the banking system should be the role of the requirements for macroeconomic, have important theoretical and practical significance. This paper attempts, based on domestic and abroad research, with reference to the management systems of the United States, Japan, Germany and other developed countries and combined with analysis of law regulation on China’s City Commercial Banks, to identify the regulatory problems of City Commercial Banks’development, then propose the corresponding measures and suggestions to solve the problems in the management of city commercial operations.