Study Onfinancial Supervision Over The Interbank Business Of The Commercial Banks

Briefly speaking, Interbank businessof commercial banks refers to mutualfundsintermediationbetween commercialbanks andother banksornon-bank financialinstitutions aiming at regulating short-term funding needs. Interbank business' original function is to regulate short-term bank liquidity. But with the recent financial market continuing to grow,interbank business financial instruments are constantly innovated and interbank business form and function has undergone significant changes. Interbankbusiness' contributiontobankprofitsisrising,so many bankshave made interbank business,the company's businessand creditbusiness asthe three pillars ofbusiness.Interbank business is famous and popular in the banking industry,because interbank business' occupancy rate for funds is very low and it suffers relatively loose regulation. But interbankbusiness' oversprawlis also derived froma number of risks,such asliquidity risk,creditrisk and so on. The People's Bank,China Banking Regulatory Commission and other financial regulators have issued many laws and regulations since 2008,aiming at guiding the interbank business standardized development. The financial supervision of regulatory authorities has some problems:inadequate supervision to the substance of interbank business,the implicit guarantee of the government and other financial institutions disrupting the financial market rules and some other problems.Financial regulators improve financial regulatory measures,aiming to restrict interbank businessdevelopment mode,prevent business risk,guide interbank business return to nature. Financial regulatory authorities also limit interbank business' many other aspects.Firstly,this paper starts from the definition of the concept of the commercial banking business.It is based on the theory of financial supervision of interbank business of commercial banks,making a depth study ofcommercial banks risk managementand financial supervisiontheory,analysing the interbank business of Baselbankingregulatory framework.Secondly, makea detail description of the form of the interbank business, the status of interbank business development and analyse the necessity of supervision of interbank business. Accordingto theclassification of supervision of interbank business,introduce the status of supervision to the interbank business and pointout the current regulatory authorities of the existing problem in financial supervision of interbank business.Thirdly,after the subprime crisis,the Western developed economies countries carried out a more cautious and prudent regulatory measures of the shadow banking business and complete the financial regulatory system. Shadowbanking business and commercialinterbankbusinesshavesimilar characters, because interbank business is part of the shadowbanking business and the shadow banking business grew out ofcommercialinterbankbusiness. So, summaringWestern developed countries advanced reform measures means important for the improvementof China'sinterbankbusiness financaial supervision framework.Finally, find out the current problems of the interbank business financial regulatory,and put forward effectivefinancial regulatorymeasures to improvefinancial supervision. To solve the currentregulators problems forinterbank business, the financial supervision should not only to improve the externalenvironmentinterbankfinancial regulation,to create a goodatmosphere for interbank business developmentin the industry, but also toimprove theinternal functioningof financial supervision, aimingto guide commercialbanks to strengtheninterbank businessrisk management.