Reformation On Chinese Banking Supervision System From The Perspective Of Basel Ⅲ

Basel protocol has been recognized by lots of countries as its influence is gradually expanded among the sphere of international banking legal regulation. In2010, Basel III was put into effect in the G20Summit which was hold in Seoul in Korea. Compared with the previous accords, the Basel III puts more rigid requirements on statutory capital, sets capital conservation buffer ratio, introduces leverage ratio regulation standards and attempts to establish an international regulation index on liquidity. The promulgation of Basel III is conducive to the authorities around the world to improve their abilities about banking risk regulation, and impels banks to strengthen their abilities in the risk management and internal governance.As the biggest developing country in the world, China is obliged to adopt advanced regulation concepts and models if it wants to grasp the development opportunities in the wave of integration of world economy. Because the current concept of the legal supervision and management in China is backward and relevant laws and regulations are defective, Specifically, China has to learn from international banking legal regulation and move forward with the rules of Law and the way of Law. Then, China will find a way which they can sinicize Basel III. The relevant regulations in the Basel III and practices around the world will provide beneficial reference and assistance so as to contribute to the perfection of supervision and management system in China.This article begins with an introduction to the history of the Basel Capital Accord and introduces the improvement characterized in Basel III on regulating standards and methods through the comparison between Basel Ⅲ and Basel Ⅱ. The second part of this paper will then discuss the problems concerned the legal supervision and management in the banking industry from the perspective of Basel Ⅲ, thus point out such problems as the systematic risk, old-fashioned ideas and the deficiencies reflected in China’s bank regulation system.Ultimately, the article provides suggestions about how to perfect the legal supervision and management systems in the banking industry of china by consulting foreign banking supervision reform. It also should set about completing the external legal supervision and management systems by supervising differently, perfecting the liquidity risk management system and withdrawal systems in the banking market; Meanwhile, improving the internal structure of banks in our country, establishing fluent legal supervision and management about information transmission mechanism and establishing dominant deposit insurance system can also be employed in order to perfect the legal supervision and management internal governance system.