Study On Our Foreign Banking Supervision Under The Perspective Of Financial Stability

Foreign-owned banks have developed rapidly in recent years. The growth rate of their assets, deposits and loans has been above 30%. As one of the systems taking part in China's financial activities, it itself includes risks and instabilities, and its instabilities could convert into financial instabilities through the conductive role of banking system. Once the instability factors diffuse widely because of lack of supervision and become a systematic financial risk or financial crisis, it will seriously damage the entity economy.At present, the financial industry in our country has been developing rapidly and gotten tremendous achievements. In particular in 2003, the financial management system in our country had a great adjustment, the supervision function of banking industry separated from the People's Bank of China and the China Banking Regulatory Commission was established independent of the central bank of China. The ultimate establishment of the separation of China's supervision system has been playing a tremendous role in strengthening the supervision of foreign-owned banks in our country.However under the current of financial globalization, liberalization and electronization and the linkage of international financial markets becoming closer, businesses of foreign-owned banks have been developing significantly and playing an increasingly important role. With the expansion of their business and territory, the banking industry in our country is facing more diversified risks.Therefore, going with the current of the integration of the world economy and finance, it has become the new issue of supervision of our banking industry to learn the advanced experience of foreign-owned banks supervision from other countries during the course of introducing foreign-owned banks and to monitor foreign banks effectively combined with the actual situation of our country so as to maintain the stability of China's financial system.This paper starts from the basic theory of supervision of foreign-owned banks and the comparison of the practice of international supervision of foreign-owned banks, combines the present situation of the foreign-owned banks in our country and the supervision, analyzes the importance of the supervision of the foreign-owned banks in our country to maintain the financial stability, and then studies deeply the influence of foreign-owned banks' entering on the stability indexes of banking system, the core financial stability. On the basis of learning the advanced experiences of the supervision of foreign-owned banks abroad it puts forward the specific measures to strength the supervision of foreign-owned banks. These mainly includes improving supervision laws and regulations; constructing systematic foreign-owned bank's effective supervision mode; perfecting mechanism of market access and withdrawal for foreign-owned banks; establishing risk warning system, actively promoting the classification supervision; accelerating the establishment of a deposit insurance system and perfecting the information disclosure system.