A Study On The Supervision Model Over Commercial Banks In China Under The Compatible Incentive Theory

Finance is the center of the modern economy, the financial sector operations related to the operation of the socio-economic status. The banking sector plays a very important position in the financial industry; the commercial banks involved in extensive business activities of the national economy and social life in all aspects, and are a core of a country's financial system. To make sure the commercial banks runs efficiently and robust is the basic conditions of every country.With the globalization of the world economy developing, commercial banking'connotation and extension have changed. After the formal accession to the WTO, China's economic integration with the global economy will enter a new stage, China's financial market will be gradually integrated into the global system of economic integration.Commercial banking supervision of commercial banks is the supervision and management. "The core principles of Effective Banking Supervision" thinks that the goal is to maintain supervision of the financial system's stability and confidence, deposits and to reduce the risk of the financial system. In the incentive-compatible regulatory philosophy, banking supervision is not a substitute for the operation of the market and the rules of the defenders, to guide the regulatory targets conduct of operations, to monitor the realization of the objectives, targets of regulation into the economy as a rational person in the operation of the market rules The conscious action by Federal Reserve Chairman Alan Greenspan as saying that the so-called incentive regulation should be compatible with and guide, not contrary to investors and the bank manager to maximize profit target of regulation.China's commercial banks against the background of regulation, the status quo, problems and trends, the paper in clear control of commercial banks incentive compatibility mode basic theory on the basis of full understanding of incentive compatibility theory in banking supervision and the importance of the development, Research on how to monitor commercial banks in China Construction incentive compatibility regulatory approach. This paper is divided into six chapters:Chapter I: Introduction. The choice of this background, purpose and significance of topics, domestic and international research developments, ideas and methods of research and innovation in this paper the possibility of a brief analysis.Chapter II: Theoretical basis. Make out the incentive compatibility of the content, from the incentive compatibility of the proposed theory, basic concepts, produce and development on several aspects of the incentive compatibility of the main content and incentive compatibility of the conditions of use.Chapter III: Foreign banking model and features of the main form. The United States, Germany and Britain, who's banking supervisory models, were studied and that can draw on the experience.Chapter V: Incentive compatibility of China's banking industry under the supervision of the existing mode of analysis. China's banking supervision there are numerous internal and external problems, this chapter through the incentive compatibility of the banks under the supervision of the cost-benefit analysis, to improve our mode of the need for banking supervision.Chapter VI: Model building. From the construction of the ideas, content, security system and supervisory staff are given all the recommendations.