Research On Legal Supervision Of Market Access Of Private Banks In China

Since the reform and opening up, China’s private economy has developed rapidly. Private economy has an important role on promoting economic growth, export expansion and employment. Diversified economy requires a diversified financial system. However, state-owned commercial banks monopolize in China’s banking system. The serious mismatch of supply and demand of funds, caused inefficient allocation of funds, and also caused a large number of private enterprises facing financing difficulties. This banking system does not match China’s current economic development. It needs to be reformed. Private banks could play a "catfish effect" and inspire the competition of commercial banks. Private banks will promote the reform of China’s banking system and help improve the efficiency of resource allocation.Banking on China’s financial system plays an important role. Banking supervision is essential. We must establish order in financial markets, implementing effective financial supervision. Supervision on market access is the first step in bank supervision. Market access affects the environment of commercial banks directly. Legal supervision of market access can reduce the business risk of the private banks.This paper starts from the following five parts. I tried to analyze market access problems of private banks and improve the proposal of legal supervision.The first part describes the background and significance and defines the direction of this research.The second part introduces the basic theory of legal supervision of market access of private banks. Define the scope of private banks as well as market access, study the significance of opening private banks in China and system risks of private banks.The third part analyzes the problems of current access legal supervision of private banks in China. There is no market access regulations for private banks. Bank licensing system is not scientific. Specific access rules are not perfect.The forth part discusses market access of private banks in foreign countries and regions. Focused on the United States, Hong Kong and Taiwan banks graded license system. Learning from their experiences, hoping to help supervision on market access of private bank in China.The fifth part presents suggestions on perfecting supervision on market access of private bank in China. Firstly, banks graduated license system should be made. Secondly, scrutiny of private banks sponsor’s qualifications. Thirdly, it should avoid related party transactions. Finally, it needs improve related mechanisms, including social credit system, market-oriented interest rate reform and deposit insurance system.