Crisis After China's Banking Regulator System Is Perfect

This essay analyzes the impact to the world banking and the challenge to the banking regulation caused by the global finance crisis, as well as the reforming trend of the world banking regulation and the adjustment of the international regulation rules. Thus, it provides beneficial references to develop and complete China's banking regulation after the finance crisis.The finance crisis in 2008 changed the world finance too much and the crisis overran the developed countries, it also changed the image of finance castle of the developed countries and made the developed countries'lie broken, which criticize the developing countries'finance operation. The essay elaborates the explosion of the finance crisis in the developed countries, and also points out the root of the crisis as well as the great challenges to the banking regulation.After the crisis, the government and the public reflected on the crisis and the banking regulation authorities reformed their banking regulation due to their demand and the outer demand. This reform is the most complete and the most penetrating financial reform in the developed countries since the "Great Depression", it influences the philosophy and the content of the banking regulation in the developed countries and becomes the guideline of the banking regulation in the developed countries in the future. The reform will impact the world banking regulation heavily and will be an important model to the world banking regulation. We should experience from this crisis and analyze, study China's banking regulation, therefore, it guides the reform and completion of China's banking regulation.Since China Banking Regulatory Commission (CBRC) established in 2003, China has formed the order of the sector regulation in finance as the "One bank, three Commissions". To the banking regulation, China established the regulation system of CBRC as the subject, involved the People's Bank and other sectors, and formed the stereo regulation structure involved the outer regulation, the inner regulation of the bank, the self regulation and the market constraint. According to the aims stipulated in the law of the people's republic of china on banking regulation and supervision, CBRC points out the idea of China's banking regulation, determines the content of the banking regulation and established the way and the method of the banking regulation. From several years practice, it proves China's banking regulation is effective and it ensures the stable operation of China's bank. However, the development of the banking and the global finance crisis challenge China's banking regulation from the following aspects.First, the adjustment the rules of the international banking regulations and the completion of China's banking regulation. After the crisis, as the rule of the international banking regulation, the Basel Agreement changed too much. China has implemented the New Basel Agreement before the crisis, but facing this change, China should study it and complete the rules of the banking regulation. Meanwhile, the international accounting standards also changed with the development of the finance, the new standards is favorable to control the risk of the bank and set up the unified regulation standards as well as compare the risk level of the different banking institution. Finally, after the crisis, some international economic organizations influenced the banking regulation too much, as an important economic body in the world, China should participate setting and adjusting the rules of the world banking regulation and endeavor to establish safe and fair international banking competition rules.Second, establishing and completing China's prudent regulation mechanism. After the crisis, the idea of the prudent regulation extended, the macro prudent regulation is taken seriously and becomes two main regulations with the micro prudent regulation. The macro prudent regulation is arising and taking seriously because of the failure of the developed countries'banking regulation in the crisis. We should study the experiences and lessons of the developed countries in their monitoring, early-warning, controlling, dealing and defusing the banking risks and analyze the shortcomings, then based on the China's practice, complete China's prudent banking regulation mechanism. Specially, in defusing the banking risk caused by the finance crisis, the practice of the developed countries proved that the government plays an important and active role, this also proved the necessity of the banking regulation. Hence, in building the market-orientation of the China's banking, we should focus on the completion and development of the banking regulation.Third, the development and completion of China's banking regulation system. After the crisis, one of the lessons for the banking regulation is that the risk's resource is the gap caused by the loosing regulation, so one of the important reforms of the banking regulation in the developed countries is strengthening the unity of the regulation. The regulation system of "one bank, three commissions" of China is favorable to the actuality of its finance operating, but with the trend of the mixed operation in finance, the system will face challenges in the future, so it should be developed and completed. The relative law of the banking regulation is the accordance of implementing the banking regulation and proves the banking regulation is legal, it is also the basement of the effectiveness of the banking regulation. Although China has established a law frame in banking regulation and CBRC also set up a series of regulations, it still has serious defects in the law of banking regulation and binds the completion and development of China's banking regulation. Furthermore, the competitive order of the international banking caused by the globalization makes the banking risk spreads through the global. The crisis in 2008 is a good example. The fact proves the importance of international cooperation in banking regulation. In this global market, China's bank should participate competition actively and establish a favorable international banking regulation environment to defend the finance risk happen and spread over China.