4. Summarize !
With the increase of competition of the
financial market, the operation risk in banking sector is going up. Lin and
Wang (2011) reported that in order to take risks, the banking regulation system
should conduct combine with both macroprudential regulation and microprudential
regulation. Liu (2009) also indicated that the weakness of the banking system
of a country can result in the instability of financial system within both that
domestic and international, and “The need to improve the strength of financial
system has attracted growing international concern.” So it’s clearly that if a
country with unstable financial system could infect other countries, even could
occur a global crisis, for example the Greece crisis. In addition, due to the
development of international trading, the trend of the integration of the world
economy is more and more obviously. The
international operation for banking sector is quite popular. Therefore,
the banking regulation and supervision trend to be a very important subject in
the financial market.
China
Banking Regulation Commission (CBRC) was set up in 2003, up to now, the
regulation system has made a large improvement, but the consummating of
banking system has still been discussed. In my opinion the regulation and
supervision system need to combine with the international successful
experience, and also should learn the parts of Basel Accord which suit for China. Meanwhile in order to lower the operation risk in banking industry,
strengthen the risk management is very important for China.
