Studies On The Legislation On The Comprehensive Management Of China's Commercial Banks

Financial banks have developed from individual management to comprehensive management. In other words, they have infiltrated into such businesses as securities, investment, insurances and become "omnipotent banks" instead of only engaging in such traditional businesses of absorbing deposits, granting loans and closing accounts. This is one of the tendencies in the world's financial field.At the end of 2006, foreign banks began to enjoy nationaltreatment and compete with China's commercial banks in all businesses. The severe reality is that faced with the competition of foreign banks which are characterized by comprehensive management, diverse services, rich management experiences and strong creativity, China's banks, limited by individual management and function and small scale, have no strength to compete with them. With the deepening of financial reform, it has become a reasonable choice for the sustainable development of China's commercial banks to realize the strategic transformation of management patterns. The transformation should be aimed for management of economizing capital, diversified incomes and competition, the key being comprehensive management. As the mainstream pattern of the development of international banking, comprehensive management can not only improve service efficiency but also effectively decentralize and lower management risk and ultimately improve profit. It has been proposed in China's "11th Five-Year Program" that China will "enhance sustained reform of the comprehensive management of financing"; Liu Mingkang, president of the China Bank Regulatory Commission, also proposes that China will "conduct research on measures of how to propel the comprehensive management of financing". The institution of these policies makes the comprehensive management of commercial banks a hot point.Therefore, it has become a task of great urgency for the reform and legislation of China's commercial banks to realize the financing transformation from individual management to comprehensive management in order to improve their international competitive force. The regulations in China's "Law of Commercial Bank" in effect now can not meet the need of financial liberation, for they are too strict in regulating the businesses of financial institutions and too specified in individual management. So China should revise "Law of Commercial Bank" in effect now as soon as possible to confer upon financial banks rights to comprehensive management, put in force "Law of Financial Holding Company" and at the same time conduct overall revision of "Law of Securities" and "Law of Insurance"in order to construct the legal system of the comprehensive management of China's financing and ultimately direct and regulate the development of comprehensive management of China's commercial banks.