A Study Of Chinese Private Banking Regulatory Problems

Private bank,which is a new type of organization structure created during the development of the commercial Banks,whose nature is not as the direct expression of its name but a separate professional departments of commercial Banks,mainly provide private banking services to certain targeted clients.Private banking business mainly includes financial and non-financial private banking services.The clients,who are eligible for private banking services,usually have higher assets,social status,comprehensive demand,which are even far beyond the millions wealth level customers of traditional commercial Banks.In recent years,the private banking business of Chinese commercial Banks have been developing sharply.Essentially,the high profitability of private banking business is most attractive point for the commercial Banks,which is why Chinese commercial Banks are increasing resource input to try to explore and dominate the private banking business market.Private banking is also seen as the potential transition point of economic reform in our 13 th Five-year Plan But so far,the development of supervision for Chinese private banking has not kept up with the speed of development of private banking business,which could cause great hidden risks in the process of developing private banking business,some of which have been exposed in the market.So investigating the regulation for Chinese private banking,improving Chinese private banking regulatory rules,regulations,and establishing the Chinese private banking regulatory system are imminent.This article takes Chinese private banking regulation as the research object,and the world's biggest commercial Banks-Industrial and Commercial Bank of China(ICBC)as an example to investigate regulation of private banking business.First in this paper,the theoretical concept,organization form and structure of private banking management,and current regulatory model for Chinese private banking are detailed illustrated.Secondly,illustrated by the example of ICBC,private banking regulatory requirements are listed from the perspectives of both regulators and internal of the bank.There is also an introduction for regulatory mode of the ICBC private banking.Then,through actual cases analysis of ICBC,several detailed problems under the current regulation of the ICBC are undercovered,such asthe lack of perfect legal supervision system,insufficient management effect,insufficient protection for customer's rights and interests,etc.Finally,by using the experience of supervision for foreign private banking,this article makes suggestions for the Chinese private banking regulatory,such as creating special law for private banking regulation,private banking regulatory rules set by exclusive regulators,setting up a unified external financial regulators and improve banking regulation mode,etc.As suggestions in this paper are given based on the real cases and investigation,the author hopes that this research could bring a positive role in promoting the advance of Chinese private banking regulation and perfecting supervision system construction.