ation under the new capital accord framework BASELIII may require changes.
Definition of key words
This paper is to measure the effectiveness of financial risk regulation from the banking institutions, and the Basel series agreement is called the capital accord, which is the risk supervision system from the perspective of bank capital. Therefore, the banking supervision as the main content of the Basel agreement, the content of regulation is also the risk, constitute the main keywords.
Banking supervision
In general, bank supervision is the use of the protection of financial soundness and banking security rules, management and supervision tools, to ensure the stability of the bank and deposit protection. In theory, banking regulation includes two aspects: caution regulation (and regulation. The so-called prudent regulation, is to impose the cautious rules on the bank, such as the mixed operation, entry, capital adequacy ratio and deposit insurance regulation. And the so-called supervision, it means to monitor and manage the agency to ensure that the monitoring process of the implementation of these Prudential rules. Clearly the difference between regulation and supervision is there. According to the definition of the bank, the banking regulations are the legal and regulatory framework of the banking operation. Supervision in the narrow sense refers to the banking regulatory agencies to monitor and analyze the financial situation of the banks under the jurisdiction of the banking sector, and continue to implement the banking regulations and policies. With the practice of banking supervision, the meaning of the word bank supervision gradually expanded, now also includes the protection of investors and compliance with laws and regulations, compliance supervision has become an important part of banking supervision. Therefore, in this paper, we do not distinguish between regulation and supervision, the two can be exchanged.
Early, the reasons for the bank's supervision are as follows. One side is the banking supervision to enhance the public's confidence in the banking system safe operation. Second, in the banking system in a crisis, the banking system can run the ultimate guarantee can only be the government. In order to prevent the adverse selection of the bank, the government will take measures to ensure that the bank is prudent. There is also a theory that, for example, Stiegler's regulatory economics (regulation, in addition to wealth transfer, does not produce any other effect. But in any case, in the theory and practice level, supervision and deregulation has been a controversial topic. And this topic, along with the banking industry as a whole in the impact of technological change, the emergence of new trends in the development of new trends and increasingly warm.
Although there are a lot of differences in the regulatory system, but in today's banking supervision, it can be found that the risk of the regulatory system is becoming an important direction of the banking regulatory system reform. Risk based regulatory system is mainly included in the two aspects of the content. One is the micro prudential supervision (that is, in the case of the risk of the regulatory authorities, the main risk for the regulatory body to develop regulatory plans. Two is the macro prudential supervision (that is, the stability of the entire financial system to carry out the necessary supervision.
Therefore, from the definition of bank supervision, it is necessary to find out the necessity of bank risk supervision. Therefore, based
