The Conflicts' Research Of Consolidated Supervision

In 2008,financial crisis exploded,and impacted on global financial industry.We have to search for the defectives in financial supervision again.For the financial global developing in the late 20th century,a lot of enormous banks began to ardently expand,and then many multinational banks and bank groups were born.Because we lack of effective supervision, some branches' bad management has negative effect on their headquarters.Then a series of enormous banks go bankrupt.International supervision for multinational banks deeps into difficulties.In view of these facts,Basle Committee passes a series of documents,and sets up Consolidated Supervision for multinational banks.That is treating multinational banks' mother country as the core of the authority and it summarize,estimate,censor and supervise the operational information of their overseas branches.However,as Consolidated Supervision has two kinds of legal conflicts,there are many difficulties when carrying out it.First is the host country as the sovereign country,absolutely has the whole economic sovereignty.Thus the mother country of multinational banks cannot deeply obtain related operational information from territory of host country.Second is the implement of consolidated supervisition depends on information disclosure.It causes a conflict with the aim of clients' financial information protection and banks secrets act.So information cannot be transmitted to mother country authority timely and accurately.These two legal conflicts cause consolidated supervision cannot be carried out effectively,even be ceased to have effect.The essence is because conflicts blocks information transmission.It is asymmetrical between mother country and host country authority:mother country cannot timely control the risks happened or being to happen and it makes multinational banks cannot have the operating plans from their overseas whole business,so that banks are damaged or even go bankrupt.Therefore,today,after we joined in WTO 7 years,financial service market opens gradually,and our country's bank industry develops fast,we holds top 3 of world banks,and overseas expansion continually becomes further,it's quite meaningful to look up the contents about consolidated supervision of Basel documents,use European and American consolidated supervision experiences,find suitable effective system to solve consolidated supervision legal conflicts,and make our authority effectively carry out the consolidated supervision to multinational banks' overseas branches.This paper is concerned with,from the birth,contents and features of consolidated supervision,finding two conflicts(economic conflict and legal value conflict),and discussing and proposing the effective solution system for the conflicts. According to two kinds of conflicts,there are two solution systems,as follows:first is under the view of country's global financial security strengthening financial supervision cooperation among countries,and under suitable situation,host countries transferring a part of economic sovereignty to other countries,to relieve economic sovereignty conflict.Second is under the value collision between personal benefit and social good,choosing social benefit fitting for all human beings,meanwhile,establishing bilateral,multilateral,and global coordination systems and setting up information security terms,to relieve consolidated supervision conflicts between information disclosure and banks secrets act.The establishment of conflicts solution systems is also meaningful for our country.This paper will find out the defectives when solving the conflicts from our country's recent consolidated supervision conditions,propose institutional arrangement for conflict based on the situation of our country,and improve our country's Consolidated Supervision,including actively joining the international communication and strengthening international cooperation, transferring a part of economic sovereignty in order to promote global development, establishing secure effective information transmission mechanism,and improving our country's laws and rules of consolidated supervision.