The Research on Modern China Financial Regulations
|Course||Modern Chinese History|
|Keywords||Financial Regulations Banking Law Banking Supervision|
The Imperial Bank of China, the first modern bank in the history of China, was founded in 1897, indicating that China Banking industry went into a new era. In the year of 1908, The Qing Government enacted the <the Banks General Rule>, indicating the beginning of China Banking regulations. Although <the Banks General Law> never went public and was enforced, this event was a milestone in the history of modern China banking regulations. Modem China Banking regulations were bom in Qing dynasty and matured during the Period of the Republic of China. Nanjing Nationalist Government enacted two typical sets of banking laws in the year of 1931 and 1947, and the one in 1947 was very important, representing the highest achievement in the history of modern China banking regulations. During those 40 years for the evolution of Modern China Banking regulations, Qing dynasty, Beijing Government and Nanjing Nationalist Government were working hard to establish a banking regulation system which derived from the most recent western system, as long as in consideration of China’s own situation.This paper focused on the development of China Banking regulations from Qing dynasty based on the documents stored in Shanghai Achieves. We compared the two sets of <Banking Law> in 1931 and 1947 from many angles, such as their legislation background, the feedbacks they received and their efficiencies. When the <Banking Law> was first announced in 1931, it received fierce objections, spatially from the Money Union, and thus failed to be enforced. The< Banking Law> enacted in 1947 was widely accepted, but it had little impact on main land areas. It became the fundamentals of the Banking system establish in Taiwan after Kuomintang was defeated and retreated to Taiwan.Compared with the <Banking Law> in 1931, the one in 1947 made significant progress, it involved <the Banks General Rule><the Banks General Law>, and classified different banks and applied different regulations to them accordingly, plus it also stated a set of general regulations for the banks as a whole. According to the<Banking Law> in 1947, the supervision effectiveness to different types of banks was insured and the supervision range was also widened, plus, a central supervision was achieved. This <Banking Law> also had very specific and detailed rules toward the reserves against deposit and withdraw in the perspective of financial risk prevention. Moreover, it classified all foreign banks as an individual and special class to monitor, and hence put foreign banks into the supervision of laws, therefore was good for the health of China Banking Supervision System.Furthermore, in order to get meaningful results on banking legislation and illustrate the way to built China’s own banking system, this paper also compared 1931 <Banking Law> and 1947 <Banking Law> against US 1864 <The National Banking Acts> and US 1933 <Banking Acts>. <The National Banking Acts> in 1864 was the first Banking Acts in the US, when Ma Yin—chu, who had studied in the US and Europe for many years, drafted the 1931 <Banking Law>, he borrowed many ideas from the <The National Banking Acts>. However, the 1931 <Banking Law> was widely rejected in China, because it did not cope with China’s situations then. The US 1933 <Banking Acts> was established after the Great Depression, which almost devastated the US banking system.14 year later, the 1947 <Banking Law> was widely accepted because it took advantage of the essence of the <Banking Acts> and in line with our own characteristics. Those examples inspired us that we should not only learn from the merits of the west but also have to cope with our own development pace when we are trying to draft the banking rules.