Investigating the Assessment Criteria of Banking Supervision from the Perspective of Financial Supervision Law

Authors

Wen-Chin Chen, Department of Industrial Management, Chung Hua University, Hsinchu, TaiwanFollow
Hung-Yi Tsai, Department of Industrial Management, Chung Hua University, Hsinchu, Taiwan\\ Department of Technology Management, Chung Hua University, Hsinchu, TaiwanFollow
Sang-Bing Tsai, Law School, Nankai University, Tianjin, 300071, China\\ China Academy of Corporate Governance; Business School, Nankai University; Tianjin, 300071, China\\ TEDA College, Nankai University, Tianjin, 300071, China\\ Management School, Zhongshan Institute, University of Electronic Science and Technology of China; Guangdong, 528402, ChinaFollow
Min Fang Chien, Business School, Nankai University; Tianjin, 300071, ChinaFollow
Lei Wang, China Academy of Corporate Governance; Business School, Nankai University; Tianjin, 300071, ChinaFollow
Quan Chen, Management School, Zhongshan Institute, University of Electronic Science and Technology of China; Guangdong, 528402, ChinaFollow

Author Country (or Countries)

China

Abstract

Following financial liberalization and internationalization, financial innovation activities have become prevalent, banking has grown increasingly complex, and the risk involved in the financial system has increased. To respond effectively to the rapid changes in the financial environment, the advanced countries in the global financial system have committed themselves to promoting financial reform. They are reviewing their financial supervisory systems and financial regulations, improving financial supervisory technology, and urging banks to strengthen their risk management and corporate governance to improve their financial systems and increase financial competitiveness. Financial supervision refers to the power of financial authorities to supervise and manage financial institutions in accordance with relevant laws. In this study, financial supervision law was used as a foundation to investigate the assessment criteria and functions of banking supervision. The new decision-making trial-and-evaluation laboratory model was used in this study to assess and explore assessment indicators for banking supervision and to examine the causal relationships and mutual influences among the criteria. Finally, methods for improving the functions and benefits of financial supervision were discussed. The method not only contributes to current theory, but can also be practically employed.

Recommended Citation

Chen, Wen-Chin; Tsai, Hung-Yi; Tsai, Sang-Bing; Fang Chien, Min; Wang, Lei; and Chen, Quan (2015) "Investigating the Assessment Criteria of Banking Supervision from the Perspective of Financial Supervision Law," Applied Mathematics & Information Sciences: Vol. 09: Iss. 4, Article 61.
Available at: https://digitalcommons.aaru.edu.jo/amis/vol09/iss4/61