Study Of China's State-owned Commercial Bank Regulatory Legal Issues

With the acceleration of financial deregulation and globalization, the supervision and management of banks becomes a hot topic. After China's entry into WTO and its commitment to open more financial sectors to foreign countries, the reformation of national commercial banks takes the center stage in financial institutional reformation. The establishment of Bank Supervision Board (BSB) shifts the role of banking supervision from the People's Bank to a professional supervisory institute-the BSB. The focus of this thesis is on the strengthening of national commercial banks supervision and on the maintenance of their competitiveness in response to the incoming new situations.The thesis is composed of an Introduction and four chapters.Chapter One deals with the theoretical bases of banking supervision, both economically and legally. Economically, the banking supervision theories are based on the financial market failure theory and the theories of financial collapse, governmental pillage, special interest and multi-dimensional selfish. Legally speaking, governmental intervention and public interest constitute the theoretical bases.Chapter Two is concerned with the banking supervision legal systems in the Western countries. The related legislative and legal modes and their characteristics in Germany, Japan, the U. S. A. and England are discussed, with the conclusion that it is a worldwide trend that both market and government are essential in regulating and monitoring banking supervision.Chapter Three is devoted to the analysis of China's existing banking supervisory legal system of national commercial banks. After a retrospect of China's banking supervisory process and a survey of the banking supervisory legal system, the emphasis is on the relevant legal system as it is designed after the establishmentof BSB. The related legal problems are discussed from these angles: the evolution of supervisory goals; the deficiency of supervisory subject; the internal deficiency of supervisory object; supervisory items and modesChapter Four attempts to formulate some suggestions for the betterment of China's national commercial banking supervision. To tackle the problems in the banking supervision of China's commercial banks, due attention is given to the legal practices of the Western countries, specially the latest development in the Basel New Capital Agreement. The suggestions mainly include: reformulation of supervisory notion; explication of the goals and principles in banking supervision; construction of a national commercial banking supervisory system; the items of supervision. Specifically speaking, financial innovation, governmental targeting, moderate level of supervision, the combination of institutional, social and self supervisions are strongly encouraged. Last but not least, the author believes that the existing laws should be under revision, in addition to his suggestions on supervision of the capital adequacy ratio, internal supervision, deposit insurance system, on-the-spot and off-the-spot inspections.