A Research On Bank Supervision Efficiency In China

The international financial crisis, the currency crisis, sovereign credit crisis,；thepresent is the age of the financial turmoil. The cause of the crisis can often come down tothe deficiency in the system and order rational is lost. Therefore，it is also the time thatreflects on the supervision system and reconstructs the financial order when the crisishappens.Finance is the core of modern economy but it is also vulnerable. This is due to thefinancial industry is based on credit not really content, so it is vulnerable to be influencedby subjective factors. So to maintain a good trend is more important than to product agood product. In order to overcome the vulnerability of the financial industry, the socialsystem arrangement will include a financial security system. It is beneficial to to resolvethe risk of financial industry in time and ensure that the overall economic will developsustainably. Bank supervision system is one of the system arrangement.This paper firstly summarizes the bank supervision theory and capital regulationtheory. And then it defines what bank capital regulation is. The paper also analyzes thefunction of bank capital regulation and the necessity to implement bank capital regulation.Then it analyzes the patterns of bank supervision behavior, and analyzes the validity ofbank capital regulation with the examples of China’s state-owned bank. Finally, thispaper proposes the countermeasure and the suggestion based on the above content.