Research On Prudential Catve-Out In GATS

Prudential Carve-out is the core content of GATS Annex on Financial Services, and the research on this clause is with great value. Currently, the schools’research on some questions about prudential carve-out is insufficiency and incomplete. These questions include the connotation of Prudential Carve-out, the differences between Prudential Carve-out and other exception clauses in GATS, the differences between Prudential Carve-out and specific commitment, the applicable standards and specific requirements of Prudential Carve-out, how to come into play the active role of prudential carve-out in balancing the financial liberalization and financial regulation, and the what we should do to properly adopt Prudential Carve-out. These question leaves space for further research to this paper.Prudential Carve-out is an exception clause for the particularity of trade in financial services. Simultaneously, prudential supervision is the objective requirement of financial services liberalization, countries should open the financial services market according to the legal system of the WTO and the requirements of GATS, while adapting to changing forms of financial markets in a timely manner to improve the country’s legal system of financial supervision, maintain security of the financial system by reasonable supervision rules, promoting the realization of benefits of trade liberalization of financial services, and the exist of Prudential Carve-out provides a legal basis for all countries to play a regulatory initiative.After joining the WTO, China have already made some modification and improvemenet on legislation of financial services sector, which is an important step to fulfill its WTO commitments and the gradual liberalization of the financial markets. Law of Commercial Banking and Regulation of the Administrarion of Foreign Bank also fulfilled WTO commitments and gave prominence to effective prudential supervision. But how to promote prudential supervision in legislation and pratice is worthy of discussing and researching. So researching of GATS Prudential Carve-out is helpful for correct establishing and grasping the concept of prudential supervision in the legislative process and practice in future.