Research On Legal Institutions For Foreign-funded Banks Regulation

With a large number of foreign Banks accessing to China’s market, certain impacts have caused to domestic banks’ portion of profits. Meanwhile, foreign banks’ entering also brings a good opportunity for Chinese banks to improve their service level and international competitiveness. Foreign-funded banks have played an important role in China’s banking industry. On the premise of WTO’s obligation, how to strengthen supervision upon foreign banks and maintain stableness of China’s financial industry and its order is a crucial problem. Therefore, against this background, the research on improving the supervision legal system towards foreign-funded banks has great significance in theory and practice. So this paper focuses on the research of legal system for the supervision of foreign Banks.Beside of the introduction part, this article is divided into four parts. The introduction part mainly illustrates the subject sources, research purpose and meaning, the current domestic and abroad research situation and developmental trend,the main research contents and innovative points, etc. The first chapter is the summary of the supervision of foreign banks; it contents the meaning, necessity and principle of supervising foreign banks. The second chapter compares the oversea supervision system to foreign banks, including such law and regulations in United States of America, United Kingdom and Japan. The third chapter discusses the existing problems of supervise foreign banks in our country, includes mechanism defects and legislative flaws. Among them, supervisor’s mechanism defects including not clearly admitting the principle of primarily use motherland’s supervision system, regulators that supervise foreign banks was set up irrationally, main focus of supervision is vague, supervision in risk control is infirm, foreign banks lack of self-management system. Legislative flaws including foreign banks’ value orientation in legislate is unconscionable, current law and regulations that supervise foreign banks are imperfect, the legal provisions and actual practice are unmatched. The fourth chapter is countermeasures and suggestions to the above-mentioned problems; contents how to legislatively improve the supervision to foreign banks; specific measures to enhance the foreign bank supervision system and specific principle in conducting; international cooperation in foreign bank supervision and so on.