The Research On The Regulatory System Of Private-owned Capital Initiated The Establishment Of Private-owned Banks

The bank is one of the most important intermediary in the financial market, and it is responsible for absorbing deposits and issuing loans. Since the Reform and Opening up policy, the banking industry has not been completely open to private-owned capital, the private –owned capital can only enter the banking sector through shares and are unable to have dominant power, resulting in the banking sector is monopolized by state-owned capital. After the financial crisis in 2008, the global economy has been in the period of downturn, the small and medium-sized enterprises are in urgent need of being financed to face the severe environment. However, considering the credit problem of small and medium-sized enterprises and the current situation faced by state-owned banks themselves that the increasing bad debts, the state-owned banks is unwilling to give loans to small and medium-sized enterprises. Combining the proposal from the third plenary session of eighteen conference that the qualified private-owned capital are allowed to set up banks with other financial institutions and the operation mode that China Banking Regulatory approved for the first batch of five private-owned capital who are qualified to establish banks, this paper will discuss and analyze the regulatory system for the private-owned banks.This paper is divided into four parts except the introduction and conclusion: The first part is " the basic concept of the establishment of private-owned banks". This part mainly talks about the two situations of establishment of private-owned banks. First, the basic concept of establishment of private-owned banks, including: the introduction of private capital, private banks and how do the private capital enter into banking industry; Second, the market position of establishment of private-owned banks and its operation mode, potential risk, the necessity of supervision.The second part is "the regulatory theory system of the private-owned banks". This part mainly talks about the basic theory, goal and principle of the establishment of private-owned banksThe third part is "the current situation and problems of private-owned banks' supervision". In detail, the regulatory problems refer to market access, market operation and market exit of private-owned banks.The fourth part is "How to improve the regulatory system of private-owned banks”. This part discusses the improvement of supervision also from the view of market access, market operation and market exit of private-owned banks.