China's Financial Supervision Under An Opening Policy

The instability in world economy and finance has aggravated with each passing day since 1980s. Governments and financial supervising authorities have achieved consensus that they should enhance supervising financial institutions, secure the whole financial system and promote a stable and prosperous growth.Since its entrance to the World Trade Organization (WTO), China has adopted a fully opening policy of its finance that foreign banks enjoy national treatment and can compete comprehensively with domestic banks. With the overall opening up of the finance, financial supervision needs to be innovated and reformed continuously so that it can not only improve efficiency of financial institutions operation and financial resources distribution, but also better ensure the stability of financial market and further advance the sustainable economic growth.The thesis first reviews financial supervision theories and revealing financial risks, then analyses the situation of financial supervision under the circumstance of opening-up and existing problems, and finally points out that principles and methods for effective financial supervision in China should be sought in accordance with the concept of giving priority to efficiency with due consideration to security.The thesis consists of seven parts.Chapter One: Introduction.This chapter provides background, goal and meaning of the thesis and review foreign and domestic studies, their approaches and research methods.Chapter Two: DefinitionThis chapter introduces concepts of financial supervision, defines relevant terms and reviews its basic theories.Chapter Three: Situation of financial supervision under opening-up policyThis chapter analyses the tendencies of finance under a fully opening policy, such as globalization, securities and networking increasing, groups emerging, and new features coming up in financial supervision.Chapter Four: Foreign and domestic financial supervision structuresThis chapter compares the domestic financial supervision structure with its foreign counterparts. Chapter Five: Features of financial supervision in China.This chapter indicates some existing problems of financial supervision in China: lacking legal measures, deficiencies of separate supervision system, weak rural cooperative financial supervision and lagging Internet financial business supervisory capacity.Chapter Six: Policy suggestionsThis chapter analyses key problems of financial supervision in China and provides its policy suggestions: perfecting legal measures, constructing a unified supervision system, improving the internet financial supervision capacity, and strengthening international cooperation.Chapter Seven: ConclusionThis chapter concludes that principles and methods for effective financial supervision in China should be sought in accordance with the concept of giving priority to efficiency with due consideration to security.