Study Of Financial Supervision In China's Commercial Banks Operating Trends

Since 1980s, along with the development of global economic integration and liberalization , drastic market competition pressure and fast development of information technology has driven the new financial institutions, organization systems and business tools come into being, and financial innovation has become the main character of banking business. Securitization business tools and deuterogenic business tools are used greatly, and the large-scale annexation of financial institutions which crosses profession is coming forth. With The increasing tension of this phenomenon, carrying out diversified management of banking is becoming a general trend. Banking of China is in the period of transformation of the economy , but the financial system in our country is still the mode of segregated operation and augmented supervision. Experience over the past few years has proved that this mode has played an active role in establishing perfect and disparate financial market system quickly and steadily. But augmented supervision is not so perfect. This is especially evident in the way that different superviser may consider more about the market of there own department than related market, which cause lack of coordination of unified action between the different supervision.Paralleling with the gradual deepening of domestic economic financial reforms and the constantly changing of international economic environment, especially after entering into the WTO, continually innovation and practical diversified management of domestic financial institutions make business division among banking, trust, securities and insurance business tend to be obscured, and the tending of diversified management of domestic financial institutions has become a given fact. We can foresee that the tending of diversified management of commercial bank will become to rise to the surface gradually. With the extending of commercial bank's integrated services, a series of related problems will follow on. If we can't solve these problems well, it may pose threat to china's financial system, cause new financial risk and bring out financial regulation dilemma. So, it is of great practical significance to design operation system of diversified management and theory frame of financial regulation of financial bank justly through rules, and incorporate theoretical analysis into china's regulation environment in order to find the way of development of commercial bank's diversified management and the supervision methods which meet the needs of our country, based on successful experiences of financial diversified management and supervision mode in developed countries.In view of above, I use many analysis methods, such as standard analysis, practical analysis, risk-benefit analysis, etc. This paper encloses two main lines of theoretical research and practical discussion and concentrates on the problem of financial regulation under the trend of commercial bank financial diversified management through theory and practice, in order to give some theory basis on changes in China's supervision system in the future and give some policy recommendations on the designing of diversified supervision mode. First of all, it deficits and discuses the connotation and mode of commercial bank financial diversified management, analyzes the cause of bank financial diversified management and looks back on the transform process. Second, it makes comparative studies of the financial regulation at home and abroad and analyzes the way of reform of financial system in China, then designs a financial regulation mode based on the analysis.Round above problems, this paper strives for breakthrough in follows: First, analyzes underlying forces of commercial bank financial diversified management from a new perspective, and points out that the vulnerabilities of traditional banking make commercial bank have the motive force to find larger developing room through diversified management. Second, based on the analysis of risk and conflict of interest in commercial bank diversified management, using the methods of course of history, theoretical models, system analysis and cost-income contrast, analyzes the advantages and disadvantages of commercial bank diversified management from different sides and points out that the mode of financial holding group is a good choice for China's commercial bank diversified management. Third, learns from the experiences of financial system changing in developed countries, combines with the facts of banking in China, reveals the characters, advantages, disadvantages and the developing trend of China's present financial regulation system. Meanwhile, it brings up that during the process of transition to diversified management of commercial bank, the changing of financial regulation system and organizations of China should obey the thought which calls step by step, in order to draw regulatory authorities design system and programmers as the change of commercial bank pointedly, realize a benign circle of "bank changing-supervision" and prevent financial risk as well as encourage commercial bank to make bossiness innovation. Fourth, puts forward that we should establish a "Financial Regulatory Commission" as soon as possible to solve the vacuum phenomena caused by the transition period of segregated operation and augmented supervision and reorganize China banking, securities and insurance authorities into one financial regulatory organization by the "step by step" mode , practise flat centralized or decentralized mode of financial regulatory, and advances the necessity, mode choice and implementation procedures of establishing unified financial regulatory system. Fifth, the thesis not only makes comparative analysis on financial regulatory system longitudinaly and laterally, but also argues the functions of financial regulatory and the premise and condition of realizing these functions. It advances to establish and improve a "firewall" among bank, security and insurance in terms of laws and system, in order to check kinds of risk brought by defect of laws and system. It proceeds to point out that these are three necessary conditions of guaranteeing the successful of coordinating financial regulatory system, which are establishing coordination working mechanism with People's Bank of China, realizing a well-round ed and dynamic supervision of China's banking and improving self-discipline supervision of banking,...