A Comparative Study Of Foreign Banking Supervision Between Chinese And American Legal System

Risk preventing is one of the most important methods using in protecting finance system and it is presented in American banking legal system everywhere. U.S. is one of the countries which have a specific law to regulate foreign banks in the world. Its legal system regulates efficiently, different departments have different responsibilities and they all work cooperatively with each other within the system. Compare to American legal system regulating foreign banks, Chinese current banking regulative ability still needs to be improved. China has opened the market to foreign banks already and foreign banks'flush in will influence Chinese's banking system deeply. Under this inclement situation, how to improve the regulative ability of foreign banks by combining domestic legislation practice and American advanced experience is quite necessary.The first chapter features current Chinese foreign banking legal system of supervision: Regulations of the People's Republic of China for the Administration of Foreign Banks is the core of current Chinese foreign banking legal system and it has began to implement by State Department after joining WTO 5 years, it also offers legislation support for Schedule of Specific Commitments on Services List of Article II MFN Exemptions. Regulations of the People's Republic of China for the Administration of Foreign Banks especially presents promises about market entering and national treatment principle of opening banking system. Besides, compare to past legislation, Regulations of the People's Republic of China for the Administration of Foreign Banks gives prominent to its legal personalization policy and prudence principle.The second chapter features current American foreign banking legal system, on the ground of American banking history and important legislations during that time, the study especially features several different type of foreign banks, such as representative offices, branches, agencies, subsidiaries, Edge Act and Agreement corporations and commercial loaning company, and their different requirements of entering the market, operations and market withdrawal. Risk preventing is presented as a predominant aspect to protect finance market so as to avoid possible finance crisis.The last chapter features a comparative study of foreign banking supervision between Chinese and American legal system based on previous analysis. Such as : Approving criteria of establishing foreign banks. U.S. passed Foreign Bank Supervision Enhancement Act of 1991 and established a "CCS Determination", more and more counties and international organizations realized the importance of CCS Determination, but there are no statute of it in Chinese foreign banking legislation. Besides, Federal Reserve also considered integrated factors when approving foreign banks entering market. Meanwhile the study discusses some existing problems of Chinese foreign banking system and emphasizes analyzing American advanced legislation experience in both systematic and technical aspects related to risk preventing. Against the background of recent published Regulations of the People's Republic of China for the Administration of Foreign Banks , this study is established in risk preventing and conceives several practical advices to improve and strengthen Chinese legal system of supervision over foreign banks.