The purpose of this paper is to verify the usefulness of information disclosure system of the commercial banks in China (hereinafter referred as "the disclosure system") and to examine if international standard of information disclosure system can be adopted properly in commercial bank in China.
There are some limitations on acquiring sufficient and reliable data for analyzing the current status of "the disclosure system". In case of most commercial banks in China, the implementation of "the disclosure system" is separated from the operation of "the disclosure system". Therefore, this study adopts "To Be model", which is necessary for defining what commercial banks in China should implement from the view of system comparing to global best practices.
The results of the study are like below.
First, this study suggests the basic structure of the law on the information disclosure system in the relevant countries including New Basle Accord, which can be used for barometer in order to compare the information disclosure system.
Second, the environment and basic structure of law on "the disclosure system" have been reviewed and analyzed in details. Thus it enables us to enhance understanding the developmental stages of the disclosure system"
Third, gap analysis between "the disclosure system" and the global standards has been reviewed in order to clarify differences between China and overseas countries.
Fourth, in case when the listed commercial banks in China are going to adopt and install a new information disclosure system in order to multiply the effectiveness of "the disclosure system", the elaborated suggestion has been provided focusing on the result of gap analysis described above.
It has been ten years since China became a member of WTO, commercial banks in China has been expected to open its business area widely to the foreign banks in China. Under these financial circumstances, the transparency of "the disclosure system"will be a key factor to the globalization of banking industry.
Although China had refused to accept New Basle Accord in 2004, now China changed the attitude as China has deeply understood the importance of the risk management after international financial crisis in 2008.
However, some limitations still remain that commercial banks in China could not provide a sufficient reliability on "the disclosure system"due to lack of experiences even though China has implemented its institutional structure.
Future study should be focused on supplementing various case studies, In addition, more detailed analysis is required whether the implementations of New Basle Accord will be successfully achieved in China in near future.