A Case Study On Arbitrage Behavior Against Commercial Bank Supervision

Commercial banks play an important role in China's financial system.Commercial banks operating with stability and sustainability is quite important for China's financial stability.In recent years,with the deepening of financial development,regulatory arbitrage and banking supervision show a situation of shifting,which has aroused wide public concern on the concept and causes of regulatory arbitrage and how to make policy recommendations.In this paper,an analytical framework combining theory with case study is adopted.In the part of theoretical research,the particularity of commercial bank management is analyzed.The theory of public interest is defined as the theoretical basis,and the reason why we need commercial bank supervision is briefly explained.By using the capital structure theory,the logic of Basel Agreement on capital supervision of commercial banks and the frameworks of supervision is briefly introduced.Then,based on the theory of supervision,the definition and concept,the purpose and approach of regulatory arbitrage is defined.By analyzing the relevant documents of CBRC,a case analysis method of regulatory arbitrage is put forward.In the case study part,we briefly classify the commercial banking system and explain the reasons for choosing the city commercial bank as the object of study.After introduces the operation situation of J city commercial bank,three regulatory arbitrage behavior is discussed in this paper to show the objective,path,influence in this aspect.This paper concluded that the commercial bank regulatory arbitrage is an economic behavior and realistic choice,bank supervision has inherent defects.As a basis for improving and perfecting banking supervision,it put forward some suggestions to promote the stability and healthy development of the banking industry.