A Study On The Regulatory Supervision Of Merger And Acquisition For Foreign Banks In Prc

With the increase of foreign banks in China financial market, the connection between China and the world financial market is more strengthen than ever before. In the last financial crisis which began at the end of 2007, lots of foreign banks choose to re-structure their entity so as to deal with the various risks. And several foreign banks in China like RBS, ABN Amro, BNP Paribas and Fortis had also been involved into some of the famous Merger and Acquisition projects. Up to now, we still have no specific law for the M&A of foreign banks in PRC. The authorization our banking regulatory supervisors got from the law or regulations is far away from enough for the more and more complex situation they're facing during the daily work.This thesis is an initial study on the supervision of M&A for foreign banks in PRC. The author go through the existing legal framework of our country together with the case study of the M&A within local banks, foreign investment to the local financial institutions and the overseas investment of the local financial institutions to analyze and assess the legal environment and the regulatory supervision for the M&A in banking industry. But in the real cases of M&A projects between foreign banks in China happened recently, both the regulator and the bank are facing the difficulty in implementation for the project, the author try to find the perfect solution under the existing legal frame work and then led to the consideration for the necessity of the supervision on M&A of foreign banks in PRC and also find out the actual meaning for the specific legislation in this field by the analyzation for the typical issues in foreign banks'M&A.Meanwhile, the author also introduced the practice of America, EU and Japan in foreign banks'M&A supervision, with the comparing to our practice to talk about the reference value and the feasibility of migration to our country. In the end, after the consolidation for all aspects, the author has presented the advice for the legislation for the supervision on foreign banks'M&A in PRC: Hope to have a systematic legislation on this field, to have a further clear definition for each regulator's role in the M&A project. Proposed to make the perfect corporate governance as the regulatory objectives and pointed out the key risk ratios for monitoring. And the antitrust review and international cooperation would also give our regulatory supervision a great help.Maybe the foreign banks'M&A in PRC is still not the hot topic in the market, but thinking of the strong connection between the foreign banks in China with their head office, they have a greater probability to be involved into a M&A project than local banks. Now we are still focus on the access of foreign financial institutions while the on shore re-structure of foreign banks cannot be ignored also. The stability of the financial market is very important to the livelihood issues and the development of the country, author hope that this thesis could cause some attention for the focus on this topic.