➢ The fifth and final goal of bank supervision is to ensure compliance with banking laws and regulations.
6.1.3 Preconditions for Effective Banking Supervision
➢ Banks occupy a central place in the payment mechanism* for household, government and business.
6.1.1 The Role of Banks and Importance of Banking Supervision
6.1.3 Preconditions for Effec.1.1 The Role of Banks and Importance of Banking Supervision
➢ It is widely recognized that banks are different from other profit-seeking business in that the economic and financial life of a country depends on banks in three important respects.
金 融 专 业 英语
Part Two
Banking Industry in China
Contents
4
5
6
Central Bank—PBC
Commercial Banks
Supervision of Banking
6 Supervision
Chapter of Banking
Chapter 6 Supervision of Banking
➢ Sound and sustainable macroeconomic policies. ➢ A well developed public Infrastructure. ➢ Effective market discipline. ➢ Mechanisms for providing an appropriate level of systematic protection.
➢ On the other hand, banks are also provided with important elements of official protection.
6.1.2 Objectives of Banking Supervision
➢ Firstly, the key objective of supervision is to maintain stability and public confidence in the financial system.
➢ Banks in market economies play a major role in the allocation of financial resources, intermediating between depositors of surplus funds and would-be borrowers, on the basis of active judgments as to the latter’s ability to repay.
Section 6.1 Importance and Objectives of Banking Supervision Section 6.2 Licensing Process Section 6.3 Arrangements for Ongoing Banking Supervision Section 6.4 Dealing with Weak Banks
➢ Thirdly, a related goal is to protect depositors’ funds and, if any bank should fail, to minimize the losses to be absorbed by the deposit insurance fund.
➢ The second goal of bank supervision is to ensure that banks operate in a safe and sound manner and that they hold capital and reserves* sufficient to cover the risks that may arise in their business.
Section 6.1 Importance and Objectives of Banking Supervision
6.1.1 The Role of Banks and Importanceof Banking Supervision
6.1.2 Objectives of Banking Supervision
Section 6.2 Licensing Process
6.2.1 Phases of the Process 6.2.2 Factors Evaluated by the Chartering Authorities 6.2.3 Basel Committee’s Requirements on Bank Licensing
6.1.2 Objectives of Banking Supervision
➢ The fourth goal of bank supervision is to foster an efficient and competitive banking system that is responsive to the public need for high quality financial services at reasonable cost.