The Supervisory System of The Banks Invest in Offshore Derivatives

• Main Authors: Jui-Ying Weng, 翁瑞英
• Other Authors: Chih-Cheng Wang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/54380542273970178937

碩士 === 國立中正大學 === 法律所 === 95 === The primarily service of banks is lending and accepting money. By collecting and dispatching the finance property to utilize the loan or other types of credit awards, the bank plays a role of a national payment structure, and is situated in the center of the country economy circulation. It has comprehensive influence regarding the overall financial operation. Therefore, the principle of bank-management should be steady and secure. Along with vicissitude of economic environment, banks’ property is no more restricted to loans; on the contrary, there’s a possibility for the most valid utilization through both the use of the capital markets and the money markets. Based on the financial investment’s target and asset fluidity, commercial banks are permitted to investing in the stock and other securities, which is an inevitable trend. However, banks’ financial investment actually becomes a mean for those who intrigue against the supervisal system and intend to dodge agencies’ supervision in the financial reforming process. They sabotage the sanity and poise of the financial system by conducting illegal trades through valid methods. Derivatives are used to protect assets from drastic fluctuations and at the same time they are being reengineered to cover all kinds of risk. But it will be growing the most serious malpractice with this growth of the derivatives market continues especially investing in the offshore securities and derivatives. This article could be divided into three observational points : First , what is the capital’s source? If the investments are almost paid by non-innate fund, does the bank have enough risk check system ? Second, will the financial supervisory agencies be able to offer perfect surveillant systems and on-site examination with regards to investing the banks’ offshore investment ? Finally, I am going to focus on the possible crisis resulting from investments in Tax Heaven. To conclude, this article will introduce the identity of the banks’ investments, and the present international supervisory system about offshore investments at the beginning. Then, it will observe our country current investable situation and the laws and further to introduce the types and the particular risks of derivatives. Finally, this article will examine what is supervisory question and the possible leaks when banks invest in offshore derivatives. I hope to find the present leak of financial supervision and financial examination and give the revisional recommendation.