The Research On The Validity Of The Bank Supervision

As a public product and service banking supervision bears the heavy responsibility of the safety of banking industry and guarantees the legitimate interests of the depositors. The effectiveness of banking supervision is related to economic and social development and the overall situation of national security. Banking supervision should be aware of grasping the problem——the extent of supervision and how to supervise to promote actively the healthy and stable development of the banking through formulating appropriate supervision policies. The Basel Committee formally promulgated the new " Core Principles for Effective Banking Supervision" and the evaluation method as the global standards of the bank prudential supervision in October 2006. It has become an internationally recognized measure of the level of international banking supervision criteria.Our country banking industry faces the comprehensive opening competition pattern, the banking industry and bank supervision are receiving the stern challenge. Therefore the supervision authority should size up the situation, judge, find promptly and clearly the new situation and the new question in advance and meet the international standards, promote the supervision idea and the method, provide the broader development space for the commercial banks. Therefore, beginning with the analyses of validity banking supervision, based on the effective theory of banking supervision, guided by "core principles for effective banking supervision" ,this paper makes an attempt to devise a valuation system. According to the empirical analysis, the writer pointed out the questions of efficiency of bank supervision in China. Finally, the paper puts forwards some corresponding countermeasures and suggestion from three aspects such as improving the ability of bank supervision department , establishing the incentive compatibility banking supervision mechanism, boosting up the banks ability of internal Control and implementing joint supervision, building up harmonious circumstance of banking supervision.