Research On Financial Macro-prudential Regulatory Framework In Post-crisis Era

Since 2008, world financial and economic situation has surged, financial crisis upgraded gradually and quickly swept the world with escalating subprime mortgage crisis in the U.S. Frightening huge losses have strongly reflected the fragility and limitation of existing financial regulatory system, and the change evolution has been prominently lagged behind the rapid development of the financial system. The ability of finance micro-prudential supervision to prevent and withstand risk has been widely questioned with the burst and impact of crisis.The micro-prudential supervision established under the minimum capital requirements has been main stream in bank supervision practice in all countries since the 1980s. Although the micro-prudential supervision was constantly strengthened, the bursting intensity of financial crisis was only increased without reduction in the last 20 years. The main reason is that: the vulnerability of financial markets is growing, the wide integration operation melts the finance mechanisms into a whole, thereby increasing the homogeneity and pro-cyclicality of the financial system in the landscape orientation with the rapid development of the financial sector; finance innovation is changed quickly on vertical orientation, more and more off balance sheet business and high lever ratio generate coexistence of high rate of return and high risk of asset bubbles. micro-prudential supervision is difficult to effectively catch the system risks hidden in the system due to deficiency in information and tool in the continuing turbulence of the whole finance system, corresponding policy measures are not provided to prevent risk shock and to stop risk extension, and micro-prudential supervision even became a cause of systematic shock under some mechanism.The important lesson of the crisis lies in that: the traditional concept of micro-prudential supervision only focuses on health of micro-financial institutions, which is not enough to copy with systematic risk impact with traditional features. Finance crisis is inevitable through positive feedback mechanism of finance system and real economy once the supervision mechanism ignores the huge risk space of finance system.Theorists generally believe that: the formulation process of financial supervision policies in all countries must be provided with two levels of macro-prudence and micro-prudence, simultaneously, risk bearing from the micro-level and risk conductance from the macro-level should obtain attention at the same time. Micro-prudence analysis focuses on paying attention to stable operation of single financial mechanism, macro-prudence analysis pays special attention to general stability of the whole finance system, the later can measure various uncertainties from the micro point of view, thereby timely issuing risk warning, using financial stability policy for intervention in real time, and effectively inhibiting the spread of systemic risk and the financial crisis spread.The theoretical research and policy implementation in the field of macro-prudential supervision were strengthened after the burst of crisis, the supervision was extended to level of the whole finance system, and focused on internal relation of finance system and external influence of entity economy, cross-market and cross-industry finance homogeneity and pro-cyclicality were inhibited through effective policy implementation, and comprehensive prevention and solution of systematic risks implementation have become the international community improvement consensus on financial supervision.Based on the above analysis, this paper takes current financial crisis as research background, and systemic risk cause of formation as major breakthrough, explores concrete path for establishing macro-prudential supervision framework, and reviews the system setting, tool cooperation and policy coordinating problems in macro-prudential supervision system, and related policy suggestions are proposed.Currently, macro-prudential supervision framework has just been discussed, and the relevant literature focuses on single points of view such as relevant concepts and specific concepts of macro-prudential supervision, complement on micro-prudential supervision, and the like. The paper takes the basic theory of macro-prudential supervision as analysis foundation, combines with foreign related policy reference, primarily proposes the theory concept of micro-prudential supervision framework, describes its concrete application in China, proposes related policy suggestions, and provides theory basis for subsequent policy design and system arrangement.The paper is based on major adjustment of major countries and economies all over the world on financial regulatory policy system in the post-crisis era, adopts theoretical analysis method to study the risk factors of the financial crisis from the system level, discusses how does the imbalance on two concepts of micro-prudence and macro-prudence trigger systematic risk, and finally lead to crisis. The comparative analysis method is adopted to study the system defect and concept limitation of micro-prudence, and to discuss comparative advantages of macro-prudence in many aspects of supervision objective, supervision methods, supervision standards and the like, thereby laying theory foundation for subsequent macro-prudence supervision framework. Normative analysis method is adopted to concretely describe the uniqueness of current systematic risk in China, and policy suggestions for constructing Chinese macro-prudence supervision framework are proposed.In theory and practice, the paper comprehensively analyzes the specific causes, components, action mechanisms and other theory elements of systemic risk, and deduces the major contents of macro-prudence supervision, and theory idea of macro-prudence supervision framework on the basis. Then, theory depth is continuously advanced, and the construction of Chinese macro-prudence supervision framework is primarily and theoretically explored according to unique feature of Chinese systematic risk. The logic development trace of the whole paper pays attention to policy patience and theory universality, and policy orientation of macro-prudence is gradually confirmed through mark of systematic risk, thereby providing new research point of view of copying with procyclicality and prevention systematic risk of finance system with stronger practice significance.