Regulatory And Regulation System Of China’s Commercial Banks Research

Almost all economic activities are inseparable from monetary capital movement. Finance has the function of funds raising and optimizing capital allocation. In the world’s financial system, commercial banks become the core part of financial system, because they have many institutions, large volume of business, wide radiating and strong capital. Commercial banks are highly leveraged industries and use small amount of capital to operate huge assets. So they have a significant impact on the national economy. If the banking system can operate safely and stable, it will lead to rapid economic development. At the same time, commercial banks have strong externalities and high risks. If there are risks in commercial banks, they will certainly affect the overall economic and social development, which will greatly reduce social welfare. Since the1980s, financial liberalization has deepened and information technology has developed rapidly. Commercial banks innovate financial products continuously, which lead to various types of risks in banking industry. Therefore, governments turn to search effective commercial banking regulation system to prevent the banking crisis and financial risks, Safeguard security and stability of the financial system. China Banking Regulatory Commission (CBRC) was officially established in2003. The main functions of banking supervision were separated from the central bank, which indicated a new banking supervision model——one bank and three commission(People’s Bank of China, China Banking Regulatory Commission, China Insurance Regulatory Commission, the SFC). With the increasingly deep opening in Chinese financial market, financial risks have been enlarged. Along with the globalization, the financial industry also transforms diversified business industry. Commercial banking supervision faces greater challenges. But now many problems still exist in commercial banking supervision system.In order to prevent and defuse financial risks and achieve a healthy national economy, it is necessary to analysis of China’s commercial banks regulatory system. This paper is in the background of globalization and further opening to the outside world. This paper analyzes the commercial bank regulatory, existing condition and the problems existing in commercial banking supervision system. Then it draws lessons from successful experience. At last the paper proposes reform measures for China’s commercial banks regulatory system.In this paper, the specific content, including the following seven chapters:Chapter I:Introduction section. Introduction This thesis writing background and significance; related research at home and abroad were reviewed; elaborate research papers, research ideas and research methods, the text proposed innovations.Chapter II:A basic overview of commercial bank supervision. Expounded China’s commercial bank supervision and the basic content of the basic concepts and describes the relevant regulatory and commercial banking theory.Chapter III:Analysis of the status of commercial bank regulatory system. China’s commercial banks on the current regulatory framework and the basic functions of an organization, commercial bank supervision relevant legal system, regulatory control system were analyzed.Chapter IV:Regulatory regime for China’s commercial banks to analyze the problems and elaboration, including regulators lack of effective coordination between agencies, commercial banks internal control deficiencies with industry self-regulation, the relevant legal system is imperfect and so on.Chapter V:Commercial banks in the developed regulatory system development process and characteristics to sort out, come to its successful experience of China’s commercial banks on building regulatory system in China.Chapter VI:According to China’s commercial bank regulatory system problems as well as international experience enlightenment, China’s commercial banks proposed regulatory system reform measures, including the establishment of an effective regulatory coordination and communication mechanisms, improve the bank’s internal controls and industry self-regulation, the establishment of a deposit insurance system improve the commercial bank supervision relevant legal system.Chapter VII:Conclusions. Refining main point of this article, the paper’s main conclusions are:commercial banks in the financial sector has indeed affect the body’s special status, therefore need to establish a sound and effective regulatory regime to prevent bank risk; China’s current system of separate supervision and Mixed operating gradually reveal the contradictions, China’s banking regulatory system there are still many problems to be solved; regulatory system for China’s commercial banks in the problems that need to be targeted reforms and innovations to improve our commercial banking supervision system, promote the banking and the financial sector healthy and stable development.