On The Perfection Of The People's Public Of China's Bank Law

The issue and enforcement of Law of People's Bank of China has laid an important cornerstone for the establishment of the framework for the financial 1egal system and has become the core of the framework of the financial legal System in China．Laws such as Commercial Bank Law together with administrative regulations like Punitive Measures against Illegal Financial Activities promulgated by the State Council and administrative measures issued by People's Bank of China co-form the complete financial legal system under China's socialist market economy．But the rule of law in the field of finance puts too much emphasis on the security and order of the financial market as a whole esp．safeguarding the security of the state-owned assets whereas it's negligent in creating a free and fair environment with the biggest margins,which is the essential-target of any financial institutions．Besides,Banking Law seeks to treat the domestic-funded banks differently from foreign-funded banks and foreign banks,which is inconsistent with the principles and mechanisms within the framework of the WTO legal system．Banks now are more prone to the supervision of the State administration while the supervision of the society and the internal institutional supervision of the financial agencies is often neglected．In accordance to the laws and regulations of WTO and the Agreement of Basel,With China's entry into WTO,the financial legislation and transparency Wil1 be bound by the WTO mechanisms and relevant clause of the Basel Agreement regarding financial safety． Some clauses of domestic laws 1ike Banking Laws of People's Republic of China will become 1ess effective after China becomes the full member of WTO． The paper gives an overall analysis of the building of banking lawsystem in China in three parts． Part one puts its emphasis on the present situation and imperfections of China's banking law system．In accordance with related banking laws enacted by People's Congress, administrative regulations by the State Council as well as managing rules and measures formulated by authorities such as the People's Bank of China,the author has found six imperfections and deficiencies existing in China's present banking law system, including the deficiencies in basic principle ,the key point lies in the negligence of its own value target of the banking law during value orientation; the deficiencies in subject qualification and system; the deficiencies in initiative and publication; the deficiencies in systematicness and harmony; the deficiencies in supervition to the banking industry, which exist in the range of supervition,the means of supervition and the incongruity and imperfection of the supervition to the foreign bank; the deficiencies in the validity of current banking regulation such as the insufficient independence of Monetary policies,the imperfection of macro adjustment system and so on. These imperfections and deficiencies limit the development of financial market and banking in varying degree along with financial globilization and formal accession to the WTO of our country.Part two focuses on the analysis of demands and challenges posed by the international financial rules and regulations to China's banking law system．With a brief introduction to the main ideas of international financial supervisory documents like the Basel,Capital Agreement and the main requests of WTO's Agreement on Service and Trade, it raises the issue of key points,difficult parts and future development of China's banking 1aw system． We must reinforce the supervision to the banking industry and strengthen information publication, introduce market restriction inaccordance with the priciple of the Agreement of Basel and the request of banking legal system. The laws and regulations of banking will face with a series of new challenges in risk supervision in accordance with new capital agreement framework of 2001 such as expantion of capital complemental way while raising the quality of assets;...