The Comparison Of Foreign Bank Supervision System And China's Choice

In the background of economic globalization and financial liberalization, foreign-funded banks are entering the financial systems of different countries at an unprecedented speed. While promoting foreign capital inflow of host countries, foreign-funded banks deepen capital internalization and increase uncertain risks of fund flows in foreign exchange market. In addition, they have an impact on monetary policy independence and the stability of financial markets.Take China as an example, since 1980, foreign-funded banks have been expanding at an acceleration speed. Its most prominent contribution is to show us the modern banking operating mechanism and advanced management methods, which promotes China' s banking services and financial reform. With China' s accession to WTO by the end of 2006, China' s economic integration with the global economy has entered a new phase. With China' s comprehensive opening up of its banking sector, foreign-funded banks have aroused wide attention.China officially promulgated and implemented the "Regulations of foreign banks" On December 11, 2006. This is a landmark document, which indicates that China has taken a historic step in opening up the financial sector. However, foreign banks have brought about so many complicated financial innovation tools and products that our regulatory authorities are facing with severe challenges. In this context, an actively learn from the advanced international experience so as to strengthen the supervision of foreign banks is of great importance.Compared with the developed countries and international organizations, we lack of supervisory experience both in concept and practice. Therefore it is necessary to further change supervision concept, adjust regulatory objectives and improve monitoring methods. In this context, the ideals of learning from other countries and improving the supervision skills will contribute to both theoretical research value and practical promotion. This study is based on the institutional arrangements and relevant laws issued by the World Trade Organization, the Basel Committee and so on. It states the generally accepted international monitoring rules and regulations of foreign banks. At the same time, it chooses the United States and other four countries and regions as research objects. While anglicizing the individual case, it makes an integrated analysis of effective supervision of foreign banks and the advanced experience of the specific practice. Then it concludes basic rule of a successful regulatory system to foreign banks. In the end, it proposes reasonable improvements in light of China' s reality.