Research on Major Legal Issues in Cross-Border Bank Supervision

Author: Cai Yi
Publisher:
Publish Date: 2004-10-01
Features: This book is based on the fundamental principles of cross-border banking regulation and conducts an in-depth study of the legal issues involved in cross-border banking regulation from three levels: national regulation, international regulation, and internal regulation. It focuses on exploring the defects and shortcomings of cross-border banking regulation under the impact of the wave of international financial integration and financial liberalization, and closely monitors the new developments in cross-border banking regulation. The author hopes to summarize the general laws and development trends of cross-border banking regulation through this research, and to learn from the beneficial rules and advanced experience of foreign and international cross-border banking regulation to improve China's legal framework for cross-border banking regulation. In summary, the research significance of this topic mainly has three aspects: 1. Strive to break through the traditional research method of treating cross-border banking regulation in a general and undifferentiated manner, taking national regulation, international regulation, and internal regulation as three main threads to sort out the complex legal issues of cross-border banking regulation under international financial integration and financial liberalization. 2. Through the study of the existing legal framework of cross-border banking regulation, analyze the general laws of cross-border banking regulation, and attempt to summarize the development trends of cross-border banking regulation on this basis. 3. China has joined the World Trade Organization. The General Agreement on Trade in Services and the Agreement on Financial Services Trade under the World Trade Organization are both opportunities and challenges for China's cross-border banking development, and they also put new and higher requirements on China's cross-border banking regulation. This paper attempts to construct and improve China's legal system for cross-border banking regulation by summarizing and learning from the successful experiences of cross-border banking regulation internationally and domestically, thereby improving China's regulatory approach, methods, and techniques for cross-border banking, so as to ensure that China's cross-border banking can cope with the impact of international financial integration and financial liberalization and achieve sound, balanced, and efficient development. (II) Explanation of Research System The "double-edged sword" effect merely reflects the phenomenon of "market failure" in the cross-border banking industry. If the financial regulatory authorities can adapt to the wave of financial integration and liberalization in a timely manner, change course, update regulatory measures, and use the "visible hand" to regulate the failing financial market, they can still achieve the safe, sound, and efficient operation of cross-border banking. However, due to the fact that financial regulation is always lagging behind the financial innovation of the regulated entities, coupled with the weak awareness of innovation in financial regulation among financial regulatory authorities, the regulation of cross-border banks frequently results in a "missed" situation. It is generally believed that the regulation of cross-border banks can be broadly divided into three categories based on the scope and methods of regulation: national regulation, international regulation, and internal bank regulation. Given the complexity and vast content of the topic of cross-border banking regulation, a comprehensive institutional study of the above three regulatory models would be prone to lengthy text and beyond the author's academic capabilities. Therefore, this research primarily focuses on the key and substantive issues of cross-border banking regulation, without aiming for comprehensiveness. For the sake of systematic completeness and the need for discussion, the author plans to take national regulation, international regulation, and internal bank regulation as the main threads to construct the research system of this topic. Among them, national regulation can be further divided into two relatively independent parts: the host country's entry regulation for foreign banks and the parent country's consolidated regulation for cross-border banks.