| The global financial tsunami caused by the subprime mortgage crisis has been still not calm. The current financial crisis is a-hundred-year return period, which radically test the current international financial supervision system, and also lead to a new round of the financial system changes. Although there are a lot of causes of the crisis, but undoubtedly, the serious defects of the existing international financial supervision system is an important reason of the crisis. For a long time, the international financial supervision policy pays more attention to efficiency, but neglect the financial safety, the supervision objective stress on encourage financial innovation, but unconcern to financial consumer protection, supervision system focus on macro-prudential supervision, but overlook macro-prudential supervision. These biases of supervision idea are all the reasons which cause the system risk break out. To avoid the similar financial crisis recurrent, and achieve lasting stability of the financial markets, we must make an overall and profound rethinking of the financial supervision idea, and then establish a correct direction for the reform of the financial supervision system. After repeated consultations and discussions, the direction of international financial supervision reforming has become clearly, and the outline of the reforming has also reached a consensus:to ensure the healthy development of financial markets, we should expand the boundary of supervision power, to deal with the systematic risks, we should introduce macro-prudential supervision view, to prevent the financial institutions become "too big to save", we should give up "too big to fail" doctrine, to make balance of the interests of the both parties of financial transactions, we should establish the concept of financial consumer protection. But reforming and redefining the financial supervision idea in the post crisis era, which is not total repudiation of the existing supervision system, but to make development and improvement on the basis of sublation. The milestone idea reforming has significant effect and profound meaning, it will totally change the structure of international financial market, and influence the managing model of financial institution, so it worth to make a deeply research. This paper is divided into four chapters to analyze the reforming trends of international financial supervision idea in the post subprime crisis era.Chapter One discussed the changing trend of international financial supervision idea after the subprime crisis. Stuck by the financial crisis, the international financial market suffered unprecedented volatility. This financial tsunami break out at America which is the global financial centre, and began from the banking system which is the centre of financial system, was not accidental, it has inevitable reason. Over the years, the American government applied improper accommodative monetary policy, which is the economic reason of the financial crisis. The financial supervision authority encouraged financial innovation and the multicipital financial supervision system, which is the legal reason of the financial crisis. The immoderate asset backed securitization and financial derivatives, which is the managing model reason of the financial crisis. To remedy the defect of financial supervision system, we need to rethink and reform the financial supervision idea. Generally speaking, to achieve the continued stability of international financial market, we should pursuit financial efficiency based on financial safety. To make the supervision system meet the need of financial market progress, we should make financial supervision and financial innovation interact well. To enhance prevention of system risk, we should make the regulatory rules change from micro-prudential supervision into macro-prudential supervision. To achieve the constraint of authority, bank and market participants, we should establish the supervision system based on market condition and enhance the market discipline.Chapter Two study on the system establishment of macro-prudential supervision, and its effect to global financial stability. This Chapter will study on the development process of macro-prudential supervision carefully, and stress on discuss the development of macro-prudential supervision conception after subprime crisis. Based on this, I will discuss the characteristic of macro-prudential supervision from the aspect of supervision target, supervision objective, priority and measure. Introducing macro-prudential supervision is the important guarantee to maintain international financial market stable. It has two main reasons:on the one hand, to prevent system risk in financial market, we need to establish a more comprehensive monitoring mechanism. On the other hand, the traditional micro-prudential supervision has certain limitation, which cannot effectively ensure stability of the financial system. For the future international financial supervision framework, macro-prudential supervision is not only an idea, but also will be a feasible mechanism. And only we establish the legal framework of macro-prudential supervision framework, it will really achieve the transform from idea to system. The objective of macro-prudential supervision is system risk. Once breaks out, it will seriously destroy the financial system and substantial economic. So when establish the macro-prudential supervision framework, we should pay more attention to preventive measures. Generally speaking, the macro-prudential supervision framework can be divided into two departments:One is preventive system, establish detailed indicator system, to identify and prevent system risk. The other is supervision system, which include time dimension and cross-section dimension, the first one use to monitor the procyclicality of financial system, the last one use to supervise the correlative of financial institution. The well system design is the important guarantee to implement macro-prudential. The chapter analyzed the institution model of macro-prudential supervision implement, and also point out the macro-prudential supervision institution should be competent and independent. We should make rule-base discretionary regulation as the implement principle. At present, many supervision authorities and international financial organizations have established macro-prudential supervision implement institution in country, intersectional and international level. This is undoubted a good beginning. But the implement of macro-prudential supervision still face several challenges, for example absence sensitive and effective prudential supervision measure, enhancing the judgement ability of financial supervision authority, the difference of macro-prudential supervision will lead to supervision arbitrage. Finally, the chapter study on the international banking capital regulation system, which changed from microprudential to macroprudential, and focus on the study on macro-prudential measures in Basel III.Chapter Three rethinked the rationality of every country’s great rescue action, which based on the theory of "too-big-to-fail’" doctrine. The authority always pursued "too-big-to-fail" doctrine as the problem financial institution rescue idea. How to recognize the "too-big-to-fail" doctrine became the worldwide problem each country has to deal with. To abolish the "too-big-to-fail" doctrine, which will undoubtedly the most important experience get from the current crisis. In 1984, Continental Illinois Bank rescue event is the sign of "too-big-to-fail" doctrine establishment. This chapter first studied on the process of the event and the American government rescue action, to discuss the condition and reason of "too-big-to-fail" doctrine. After this event, many scholars animadvert on the use of "too-big-to-fail" doctrine, but the government never stopped use the principle to rescue its own large bank. Over the years, the governments keep on using the "too-big-to-fail" doctrine base on system important theory, social cost theory, public choice theory. The break out of subprime crisis made the limited "too-big-to-fail" doctrine obtain new effectiveness. But the frequent large rescue action, not only make the government suffer large financial burden, but also make the taxpayer finally foot the bill. It makes various sections of society seriously argue the proper, impersonal and negative externality of the "too-big-to-fail" doctrine. To prevent the react of similar financial crisis, abolish "too-big-to-fail" doctrine, to enhance the supervision of large complex financial institution is imperative. Resolving this problem is not a easy thing to save or abolish the "too-big-to-fail" doctrine, the key point is to establish a effective supervision system which through the process from financial institution "admittance, management, exit". Concretely speaking, the preventive measure include insulate the systemically relevant functions of large financial institution, properly limit the merger action of large financial institution, the continuing regulation measures include enhance the corporate governance structure of financial institution, introduce "Volcker Rule" to regulate banking business, establish Contingence Capital System, the liquidation and exit measure include establish Living Will, establish liquidation mechanism.Chapter Four studied on the financial consumer protection theory after the subprime crisis. On the financial market, the financial consumer is always at the weakness position. This chapter study on the basic theory of financial consumer protection. Following the development of financial market, the status of ordinary market participant has become from investor to financial consumer. The financial consumer take part in financial transaction through purchase financial product and accept financial service, the financial consume has become one indispensible part of everyday life. But the status between both sides of financial transaction is extremely inequitable. The financial consumer is always at the weakness position in professional knowledge and transaction information. If the confidence of financial consumer is injured, they will refuse to take part in financial transaction, which will seriously influence the stability of financial system. Therefore, we should insist on tendency, overall, proper principle to enhance financial consumer protection. Fix on the financial consumer benefit in legal form is the key point to financial consumer protection. According to the feature of financial transaction, the information right, privacy rights, recourse right are the most important ones. Enhancing financial consumer protection is a system project, we should consummate the legal system from the aspect of legislation, enforce the law and judicature. After subprime crisis, the western countries have generally established integrated legal framework, there are many good experience worth to learn. The enforcement of law by the financial supervision authority is an important way to implement the law, by establish a special financial consumer protection authority, and build effective complaint system for financial consumer, will soundly ensure their benefit. Lawsuit is the powerful way to protect financial consumer benefit. Because the number of financial consumer is very large, and they are distributed throughout the country, we should improve financial consumer class action, to provide an effective, low cost rescue way for financial consumer. |
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