Applied Mathematics & Information Sciences

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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.