Study On Banking Supervision Institution From International Experience

Period after reform and opening, China's financial and economic structure has undergone tremendous and profound changes, for example, the finacial system speed up the transition process, the national economy has improved the level of monetary, and the financial scale and quality grew rapidly. The financial institutions, financial market, financial tools, as well as financial management, and other areas have made outstanding achievements. However, that can not be avoided is that our country's financial supervisory faced with tremendous pressure and challenges. The banking activities plays a majority role in China's financial activities, making banking supervision even more important. The trend of world economic globalization and China's entry into the WTO made a powerful pressure on the internationalization of China's banking industry. A weak foundation and great problems making China's banking sector more complicated that we have to construct a suitable banking supervision mechanism badly.Likewise, the international financial crisis in the banking sector also abound. Many developed countries, developing countries and countries in transition have experienced a very serious banking crisis. At the same time, as the development of financial globalization, the banking crisis spillover effects gradually stepped up, making a country's banking crises often developed into a regional or even greater scope financial crisis. Bank regulatory authorities in all countries and relevant international organizations think on the effectiveness of the existing regulatory system and the safety of reflection.This paper make introduction of the history of the banking supervision and the status quo, the history of arguments between the banking supervisory control and liberalization, the development of the theory of banking supervision. The paper also expounded relative theory of banking supervision, including the basic content of the new institutional economics, transaction costs, the state and property rights theory, the origin and composition of the system, system changes, and the supply and demand balance, asymmetric information, and by which to carry out the banking supervision issues. New Institutional Economics system is divided into two categories as formal and informal systems, that formal system is regarded as physical system while the informal system includes beliefs, ethics, customs, ideological and relatively invisible system. Therefor, the paper will discuss the bank supervision into two parts as the formal system and the informal system At the same time, Manaoaier. Decane-(International Monetary Fund) put forward three pillars to the banking sector soundness, namely, official supervision, internal management and market discipline. So this paper will make research on banking supervision in three aspects as internal control system, external monitoring system and the market monitoring system.The internal control, firstly, reviews the internal control theory and the Basel Committee's view on the internal control of commercial banks, secondly, introduces the basic principles in internal control system and applications of system theory, control theory, information theory in the governance structure of the cominternal control, thirdly, puts forward problems and advices in the governance structure of the commercial bank. Finally, adopted a business model to discuss the reputation incentive mechanism.External regulation makes introduction of the access mechanism, the deposit insurance system, lender of last resort system, capital supervision system and the pre-commitment. Also it makes construction of a game model between bank owners (the people), bank regulators and operators to discuss the preventation collusion problem.As regards to the market control, this paper discusses the definition, the development of the market control theroy, its constraints, the role of the market mechanism, the premise of the international banking market constraints and the reality of the progress, and put forward advices on china's market control system construction.Finally, this paper introduces Confucianism, Buddhism and Taoism to make application of the traditional Chinese culture in the state-owned financial institution regulatory governance, thus building a proper full range of banking supervisory system that informal and formal system combined into an organic unity.