Research On Reform Of Government Regulatory System In China's Banking Industry

Whether the banking industry, as the core of financial system in a country, can work steadily and efficiently influences the flourish and development of national economy. However, the banking industry has characteristic of high risk. The Domino effect of a banking company's bankrupt tends to result in the crisis of the banking industry even the whole financial system. Therefore, all over the countries of the world attach highly importance to banking industry, and further strengthen the government regulation to their banking industry. After more than twenty years economic reform, there have been dramatic improvements in business management and economy performance in China's banking industry, nevertheless, it still has a lot essential shortages compared with the developed countries, and is still faced with many problems needed to resolve that how to enhance our banking competence on international markets quickly and realize the sustainable development.According to the theories of new institutional economics, the institution has the functions of incentive and restraint. More and more economists have got to know that the institution is the main factor to restrain the development of developing countries. But in the process of economic reform in our country, we are just lacking of the institution with the functions of incentive and restraint. As for the banking industry in our country, the banking regulatory system, as a kind of institutional arrangement, serves the functions of incentive and restraint in essence, so it is the key problem to the banking sustainable development in our country that if an efficient banking regulatory system can be established and produces its good functions of incentive and restraint.According to this, from the perspective of the economics of regulation, aiming at the banking regulatory system, and making use of the comprehensive analytical tools of the new classic economics and the new institutional economics, this dissertation establishes a new analytical framework of the banking regulatory system that is"Subject—Object—Mechanism"(abbreviated SOM). Based on the comparison and reference to the reform experiences of banking regulatory system in developed countries, the dissertation discusses the main existing problems in China's banking regulatory system, designs the total reform framework of China's banking regulatory system and puts forward some effective reform countermeasures, expects to do a beneficial quest to the reform and development of China's banking industry.The dissertation is composed of six parts:Introduction. In this part, the dissertation proposes question, introduces the research significance, the analytical method, the structure arranged of the dissertation, the definition of the research scope, and the main innovations and shortages in the dissertation.Chapter 1: Review on the theory of banking government regulation. Firstly this chapter does a review on the theory of government regulation---the theoretical foundation for the banking government regulation, and then further elaborates the theoretical development of the modern banking government regulation. Finally this chapter does a brief review on the studying condition for the theory of banking government regulation in China.Chapter 2: Theoretical foundation for the reform of banking regulatory system. Firstly, this chapter establishes an analytical framework of SOM for the research on banking regulatory system, and analyses the banking regulatory system based on this analytical framework, and then discusses the main motives of the reform of banking regulatory system with the analytical tool of game theory. Finally this chapter studies the dynamics of short-term and long-term equilibriums in the reform of banking regulatory system by benefit and cost method, and produces a model of ideal boundary zone of the reform of banking regulatory system.Chapter 3: Comparison and reference to the reform experiences of banking regulatory system in developed countries. This chapter does a comparative analysis about the reform experiences of banking regulatory system in the main developed countries, summarizes and puts forward some beneficial references to the reform of banking regulatory system in China.Chapter 4: History changes and main existing problems of banking regulatory system in China. This chapter firstly analyzes the history changes of banking regulatory system in China, and then studies the main existing problems and their sources deeply in China's banking regulatory system.Chapter 5: Total framework design and countermeasures of the reform of banking regulatory system in China. This chapter studies and designs a total framework of the reform of banking regulatory system in China, puts forward the target, principle, the path selection and concrete reform countermeasures.The innovations in the dissertation are mainly followings:1. Concluding from the existing research results, the studies for banking regulation mainly from the perspective of the economics of finance, and many of them are practical studies, the systematical studding results about the banking regulatory system are still not much. Compared with the same kind of domestic researches, the dissertation, aiming at the system and making use of the comprehensive analytical tools of the new classic economics and the new institutional economics, does a thoroughly systematical research on banking regulatory system from the perspective of the economics of regulation.2. Based on the analysis of the connotation of banking regulatory system, the dissertation establishes a new analytical framework of banking regulatory system that is"Subject—Object—Mechanism", which makes the logic structure of research on banking regulatory system more complete and more systematic.3. Aiming at the problem of inappropriate regulation caused probably by subjective intentional negative motives, the dissertation puts forward a new point"regulatory plunder", and discusses its causes, characteristics and harmfulness deeply. The proposal of the point"regulatory plunder"further expands the theory of regulatory capture, also making the regulatory capture theory more close to the objective actuality, and having more maneuverability to the reform practice of banking regulatory system in China.4. The dissertation thinks that the regulation to the regulator must be carried out from two levels of formal system and informal system, and introduces the theory of"psychological contract"in psychology, proposes that the moral self-discipline construction based on psychological contract should be strengthened at the same time of establishing a valid mechanism of exterior supervision and constraint.