Challenges and developments in bank supervision system : a comparative analysis between the EU and China

Abstract

Many countries around the world have experienced banking crises in the past two decades. More recently, the European banking crises of the early 1990s have become supplanted in people's minds by the Asian finance crises of 1997 and the subsequent crises in Russia, Brazil and elsewhere in 1998. The international community was already aware of the weakness in the regulation of banking and the increasing risks that were arising from deregulation and globalization. The development of the Basel Accord on Capital Adequacy in the years was perhaps the most obvious response. All countries are witnessing substantial changes in the structure and nature of banking. These developments have led national policy makers to focus increased attention on the crucial role of banking supervision.