The Legal Research Of The Supervision Of Market Access Of Foreign Banks

Obliviously, the financial liberalization and economic globalization have becomethe main trend of the world development. More and more foreign banks accelerate itspace of global expansion; foreign banks will bring lots of benefits to the host country,such as making up the shortage of domestic funds, bringing mature managementsystem and advanced service concept. But everything has two sides, the coming of theforeign banks at the same time will also bring some negative effects, such asacceleration of the international risk transfer. It is very necessary and urgent now tostrengthen the supervision of market access. Predicting risks before it happens is thebest way.Foreign banks have been to China for some years, especially since the accessionto WTO, China open financial service market, more and more foreign banks pour intoChina. The entry of foreign banks is accompanying the opportunities and challengesof the development of Chinese banking industry. On the one hand to realize the goalof attracting foreign investment vigorously, participating in international financial; buton the other hand, opening up the domestic bank enhances the opportunities ofinternational financial risks, once mismanagement and turbulence of one bankingindustry will have "the Domino effect". For foreign banks, the establishment of theShanghai FTA is a historic new opportunities for development, which is good for thefurther development of foreign banks in China. In the future, the entry of foreignbanks will gradually relax striations, but to sustain the health, stability and safety ofChinese financial development, China’s financial supervision authorities must takeprudent and effective supervision on foreign banks. This paper is based on theanalysis of the legal system of other countries and international organizations onmarket access of foreign bank supervision, to summarize the defects and loopholes ofChinese market access supervision of foreign banks, and to discuss how to improveChinese market access supervision system of foreign banks.