A Research On Information Disclosure Regulation Of Commercial Banks In China

In the 1990s, with the outbreak of financial crisis, the growing complex of banking business and innovations, as well as the lack of efficiency of traditional bank regulation, the international banks gradually consider that it is urgent and essential to strengthen the transparency of banking sector. The role of information disclosure is getting more and more important in the risk management and bank regulation, especially with market discipline becoming one of the three pillars of the Basel Accord. After our entrance into WTO and more and more listed banks into the capital market, how to improve the total quality of information disclosure of our commercial bank by strengthening the information disclosure regulation becomes a focal point we can't avoid. However, there are not enough researches on the information disclosure regulation of commercial bank because our bank regulation is too late to be in line with international convention. And therefore, there isn't a set of perfect regulation system of information disclosure of commercial bank, to some extent, which restricts its development in practice in China today. On the basis of summarizing alien and domestic researches, from the perspective of banking regulatory sector, there is a systematical research on information disclosure regulation of commercial banks in this dissertation.This dissertation is divided into six parts.Chapter one introduces the research meaning and research perspective of this article, by summarizing references and explaining research background, research problems and research methods.Chapter two analyzes theoretical foundation and institutional Changes of information disclosure regulation of commercial banks. Fist, analyzing the economic theory of information disclosure regulation of commercial banks, it considers that the development of modern economics especially market failure theory and information economics are the theatrical foundation of information disclosure regulation of commercial banks. Information economics explains problems such as the economical reasons, necessary for information disclosure regulation of commercial banks, and so on. Economical market failure theory is the foundation of the bank supervision theory of main economists. Banking regulatory sector demands commercial banks make compulsory information disclosure on the basis of voluntary information disclosure in the market. It is an obligatory system arrangement to resolve the problem of information asymmetry and to protect public interests. Secondly, from the new perspective of Basel Committee on Banking Supervision, an authoritative organization, this paper makes a study on information disclosure system, the process of new system and the reasons on establishing pillar 3, market discipline and its inspiration of information disclosure to our commercial banks. Next, review institutional changes of information disclosure from three stages and summarize its characters. Finally, basic framework of present regulatory system of information disclosure is elaborated for the basis of next parts.Chapter three discusses the limitations to legislation and enforcement of regulatory system of information disclosure of commercial banks. The limitations to legislation are divided into four parts, system defects of Compulsory information disclosure, flaws of punishment system of irregulative information disclosure, disadvantages of external audit taking part in the regulatory of system of information disclosure. On the basis of studying on present status of information disclosure of commercial banks, limitations to law enforcement of information disclosure are mainly in the following areas. 1. There is a lack of the main regulatory system. 2. Regulatory powers and responsibilities for information disclosure regulation of commercial banks are too simple. 3. There are different standards for information disclosure regulation of listed and non-listed commercial banks. 4. Information disclosure regulation of listed commercial banks cannot reflect the special nature of the banking industry. 5. Some of the non-listed commercial bank has not under the regulatory system .6. Regulatory techniques and methods should be improved. 7. There is a shortage of human resource in the banking regulatory sector. 8. Mechanism of exchanging regulatory information is not yet perfect. 9. The resultant force in information disclosure regulation have not yet formed. Chapter four discusses the establishment of a conceptual framework of information disclosure regulation of commercial banks. Research on improving regulatory system of information disclosure is divided into two parts, conceptual framework and application research. This part is mainly about conceptual framework which should includes following contents, for instance, definition, regulation objectives, regulation meaning, regulation objects, regulation content, regulation standard, regulation methods and so on. Analyzing systematically, conceptual framework of information disclosure regulation is a manmade conceptual system existing under certain circumstances. Regulation definition, objectives, principles, and objects are structure compositions in this system and there are logic relations among them. And therefore, the primary research in this part is on the major elements of information disclosure regulation theory of commercial banks which contain above elements.Chapter five systematically researches on the applications of improving regulatory system of information disclosure of commercial banks. This part begins with practical examples to demonstrate the effect of information disclosure at this stage of listed commercial banks are clearly relevant with sufficient index of information disclosure, and other variables factors are weak or negative correlation. That is to say, under the circumstances of underdevelopment capital market and lack of market discipline, strengthening regulation plays a decisive role in overall level of information disclosure of listed commercial banks. Then, this article states the main factors play important role in regulatory system of information disclosure. And therefore, some specific propositions are put forward in later parts mainly about regulatory organization system, regulatory coordination mechanism, the external evaluating mechanism, regulatory procedure system and social environment.Chapter six introduces the major conclusions, new points, some disadvantages and follow research proposals. Summarizing its main conclusions and new points, we put forward follow research directions and subjects based on limitations researched in this paper.The innovative points in this paper are as following:Firstly, there is a systematic and comprehensive research on improving information disclosure regulation of domestic commercial banks from a special perspective of banking regulation sector in this paper. A lot of researches on information disclosure are mainly about present status and problems of commercial banks, however, there are not enough researches on information disclosure from the perspective of banking regulatory sectors. This paper puts forward the theoretical framework and applications based on the study on system shortcomings of information disclosure of commercial banks and regulation limitations in accordance with the research idea of the regulatory remedy of the shortcomings and loopholes - a new regulatory requirement for information disclosure– improving regulatory system of information disclosure of commercial banks. And therefore, to some extent, it can be said that it fill some gap in this research area.Secondly, this paper initially constructs the conceptual framework of information disclosure of commercial banks to help make up for the basic theoretical research in this field. It states that regulatory definition, objectives, meanings, objects, standards, principals, methods should be included in the conceptual framework. It systematically demonstrates a series of elements in the conceptual framework of information disclosure regulation of commercial banks. Analyzing systematically, conceptual framework of information disclosure regulation is a manmade conceptual system existing under certain circumstances. Regulation definition, objectives, principles, and objects are structure compositions in this system and there are logic relations among them. And therefore, the primary research in this part is on the major elements of information disclosure regulation theory of commercial banks which contain above elements.Next, this paper discusses the influences of Chinese bank regulation on commercial banks for information disclosure by means of empirical research methods and obtains valuable experience in evidence. It proves supervision authorities at this stage of listed commercial banks are clearly relevant with sufficient index of information disclosure, and other variables factors are weak or negative correlation. That is to say, under the circumstances of underdevelopment capital market and lack of market discipline, strengthening regulation plays a decisive role in overall level of information disclosure of listed commercial banks.Finally, from the view of practice, how to improve our regulatory system of information disclosure is well studied in this paper, and put forward some suggestions that have a certain reference on practice of bank regulation. It begins with regulatory organization system, regulatory coordination mechanism, the external evaluating mechanism, regulatory procedure system and social environment. Then it makes available policy recommendations to improve the quality of information disclosure regulation of commercial banks.