The Study On Supervision Legal System Of Market Access For Foreign Banks

With the deepening of economic globalization and the rapid development of financial liberalization,the bank as the basis of the financial industry, it plays increasingly prominent role, especially foreign banks’efficient operation of capital and high-quality financial services has made a great contribution to theprosperity of the international financial marketsit, at the same time, would also pose certain risks in thefinancial market of the host country. Foreign banks as an important part of the international financialmarkets, the global expansion trend has become increasingly evident, the impact on the economy of thehost country also increases. Market access for foreign banks is the host country to be the most importantissue facing the corresponding regulatory system has a vital role, not only for ensuring the financialsecurity of the host country and the healthy development of the banking sector is becoming the focus of thecountries in the process of financial liberalization.Any country in the financial regulatory always emphasized steady operation, to ensure that do absorbthe outstanding foreign capital, the prosperity of the domestic financial markets at the same time will notaffect the security and development of the local banking sector. Various services agreement under the WTOsystem provide effective legal mechanisms for international cooperation on foreign banks, foreign banksmarket access solutions developed by the Basel Committee worth countries to learn from the internationalrules of the multinational banks. Since2001after joining the WTO, China began opening up of the bankingsector, in December of the same year, the State Council promulgated a new "foreign financial institutionregulations" for compliance with its WTO commitments, foreign banks access system modified accordingly.After the five-year buffer period, China promulgated "the Management Regulations of foreign banks" has asymbolic significance, suggesting that China’s banking industry has entered a period of full liberalization.In the foreign banks access conditions, access form, access range of specific regulation, the legaldocuments has made many foreign banks access to the results of the regulatory legislation, but there aresome limitations and shortcomings.In addition to the introduction, the conclusion, the body is divided into five parts:The first part introduces the meaning of foreign banks, foreign banks, market access regulation, the need for regulation "and" host country legislation on the regulation of market access for foreign banksprinciple. Foreign banks to enter the host country is bound to impact their local banking, and its impact onthe security and stability of the financial markets, so the host country market access of foreign banks isextremely important to effective supervision. The focus of this part of the four foreign banks on theinternational market access is combined with the practice of States introduced legislation principles, namely:protectionist principles, the principle of reciprocity, the principle of most favored nation treatment andnational treatment principles. The basic theory of the basic premise of this article follow-up in-depthanalysis.The second part is the first focus of this paper, the author carried out a detailed comparative analysisof the use of comparative analysis of the world today in the supervision of foreign banks market accesssystem. Access conditions, form, scope of business by foreign banks three specific regulation, the hostcountry can achieve the introduction of merit-based, reduce risk, undermine the purpose of the impact oflocal banks. The comparative analysis of the system below the lack of legislation in our country andimprove the recommendations provided material and theoretical support.The third part introduces the international rules of the regulatory aspects of market access of foreignbanks. Foreign banks in the important role of international trade alone a country regulatory authorities hasbeen difficult to meet the practical needs of international cooperation mechanisms can effectively solve thisproblem. In this part of the WTO Trade in Financial Services Agreement and the Basel Committee todevelop market access for foreign banks and regulatory aspects of legal documents provides a wide field ofvision for a better understanding of the legal system in the field of construction.The fourth section describes the regulatory legislation in the course of development of foreign banksin China market access, and carried out a detailed comparative analysis of2006the State Councilpromulgated the "foreign banks Management Regulations" and the2001"foreign financial institutions tomanage Ordinance, so as to arrivethe market access of foreign banks in China regulatory characteristics ofthe legal system.The fifth part is the focus of the market access of foreign banks in China regulatory deficiencies andsuggestions for improvement of the legal system. Including the lack of legislation Example, accessconditions of the applicant’s limit is too simple, the regulatory requirements of the home country is not detailed enough, the limitations of the form of mergers and acquisitions access, irrational business scope,regulatory objectives are not clear, and so on, then put forward sound recommendations.This paper introduced the basic theory of the market access of foreign banks regulatory,country-specific comparative study of the legal system, international agencies provide regulatory adviceand analysis of the status of legislation in the field, a comprehensive understanding of the legal theory offoreign banks market access regulation, lack of market access of foreign banks in China regulatorylegislation and make recommendations for improvement.