China's Financial Reform: Issues and Legal Suggestions

High or low degree of banking market reflects the overall level of development of a national market economy. In China, there are still more stringent restrictions for the domestic private capital to enter the banking market; the market of the interest rate and exchange rate of RMB has just started; there are still the larger institutional barriers in enhancing the regulatory capacity and the level of the banking regulatory agencies. Solving these problems will not only improve the relevant legal system, but also establish the various mechanisms and the specific implementation rules to ensure the effective running of the system for. The main points to reform is: on the access of banks, we should take a access system combined the clear method to customize with the record-keeping system on the interest rates and exchange rates, we should adopt the way of transaction pricing of international market as soon as we can on the supervision of the banking sector, we should strictly strengthen the universal applicability and executive rate of the responsibility according to the statutory standards and procedures. Only in this way, can we make China's banking industry to become the main body of modern financial services with the capacity of international competitiveness and international cooperation on the basis of the rule of law.