Research On The Supervision Of Charging For Comercial Bank

Banking charges is not only closely related to consumers, but also the insurmountable problems in development of commercial banks. Concerning about the banking services, while not perfect, it is necessary to promote the development of supervising banking charges to solve in the root disadvantageous factors, so as to achieve a balance of interests between the both parties involved. Therefore, this paper studies the issues related to the present stage of China’s commercial banks’charges regulation mainly from four parts.Part Ⅰ:It mainly elaborates on the meaning and function of commercial banks’charges regulation. On the basis of introduction of China’s commercial banks charges regulation on the legal system, it outlines the establishment of relevant laws, describes the development of some part of regulations, explains the evolution of the regulatory bodies and illustrates trends of regulatory legal system. It defines China’s commercial banks’charges regulation. Our commercial banks’charges regulation refers to government regulators (ie, the National Development and Reform Commission, People’s Bank of China, China Banking Regulatory Commission) in order to regulate the development of banking institutions and maintain economic order, and to protect commercial banks and interests of consumers provided with banking services by the former, thereby conducting rulemaking, and code of behavior and so on a series of activities of supervision and management in connection with commercial banks charges, and the process as well in accordance with laws, regulations and policies. On the basis of understanding the definition of commercial banks charges mentioned above, it refers to the regulatory authorities to protect the vulnerable consumer interests, the right to know and the function of safeguard the entire financial order. Consumer as the weaker party, are in need of protection by related laws and policies. Meanwhile regulatory authorities play an important role in the commercial banks charges aspect. As the baseline of regulatory functions of commercial banks charges, it ought to maintain consumers’ confidence in the banking markets and institutions, to protect consumers, to protect the right to information, in order to avoid the occurrence of complaints and crisis events. Meanwhile, commercial banks charges regulation also contributes to the competition of equality among commercial banks, taking into account the efficiency, maintaining the order of the banking sector, ensuring the development of the financial sector, and moving the national economy steadily forward.Part II:It introduces some models of foreign banks charges regulation and inspiration to our country. First it has introduced the development situations of bank charges regulation in regulatory approach in the U.S. and the UK.. In the United States, it majorly follows the specification mode of market adjustment, with mechanical customized supplement, and most of cases, the Code of Federal Regulations is presented with principled provisions. And each state has a large number of charging rules. Specifically, from information disclosure, simplification of process of dealing with disputes, and establishment of standard contract and the alike, it elaborates the advantages of charging regulation in the U.S, and vice versa in the UK. And it gives specific analysis of the basic processes of complaints mechanism, starting with its unique way of complaint mechanisms, ending up with its fast, and easy advantage fleshed out. Then it comes to the summary of the main advantages of the U.S. and UK on bank charges in regulatory model, the detailed revelation in helping vulnerable groups, information disclosure, and other aspects of industry self-discipline, and the inspiration which brings to China, in reference to our regulatory charges.Part III:Looking closely into the current situation of China’s commercial banks charges regulation, it gets to the bottom of the existing problems. Currently the price charged for services performed by commercial banks are divided into two types, one is government, according to policy, arranges prescribed price, the other is a commercial bank formulates price independently, based on market adjustment mechanism. Both methods have advantages and disadvantages, irreplaceable, and it ought to take up a considerable proportion in the actual development respectively and maintain a balance. If the government’s standardized charge were implemented alone, it would probably counterproductive in the development of commercial banks, reducing the business functions and service levels, and thus can not meet consumers demand. Likewise, if the market blindly relied on market mediation, tended to take the initiative, there would be a lot of high-end custom, and ordinary integrated financial services. Therefore, based on the relevant laws and regulations on the comprehensive sort, it cited part of the defects. Mainly it analyses from two major aspects, one is the pricing mechanism defects, the second is to be standardized charging behavior. Because of the pricing power is not strong, unscientific assessment system, insufficient regulatory intervention and other factors, the existing pricing mechanism is not perfect, and it is difficult to adapt to the numerous projects development. Thus banks not only fail in meeting consumers demand, but also infringing on consumers legitimate rights and interests. Therefore, with regard to the pricing mechanism existing defects is mainly reflected in:loopholes in legal norm to commercial banking services fees; at the price of regulated by the market by the introduction of new charging services items, it does not strictly follow the headquarters norms, nor according to scientific estimation proposes reasonable price, but falls in one-sided pursuit of maximizing benefits; it fails to release clear billing information or the changed terms of the information; it only conducts the government guidance and government pricing in important commercial banking services items related to national economy development and people’s lives; formulated and adjusted by head office itself solely, so that the right of pricing commercial banks service charging in practice is highly concentrated, and it can not guarantee the flexible and smart price mechanism according to local conditions; lack of inspecting unreasonable specification contract terms; within the scope of commercial banking market regulation independent pricing system, it implements filing system rather than approval system. Speaking at China’s commercial banks in the behavior of service charges, from the consumer’s right to know and the right to fair dealing, it focuses its analysis on these two aspects of the existing problems. Breadth of pricing negotiations, and degree of fairness of hearing procedures, transparency of business charges, openness of charging information, a reasonable degree of information changes, the balance of the dispute consultations are all related to the right to information and fair trading rights of consumers, influencing consumers decision-making, which is the key for consumers to determine whether to maintain some partnerships with the banks.Part IV: China’s commercial banks need to be improved the monitoring of charges, and for the current existing problems, solutions and measures should be proposed. Discussion includes two aspects, one is to standardize China’s commercial banks charges regulatory laws and regulations:including carding the existing laws and regulations; refining items, to avoid the risk of principled vulnerabilities; to restrict dominance of banks; to have effective review and assessment of market adjusted price; to formulate service pricing regular inspection system; to be expressly stipulated in writing in corresponding to penalties. Secondly, to learn from foreign commercial banks models related to improve the monitoring of charges, including the establishment of self-regulatory organizations; establish a complaint mechanism, establish a complaint handling and dispute resolution mechanisms; to improve the information disclosure system; to formulate standard contract template.