The Analysis On Causes Of The U.S. Financial Crisis And Enlightenment To China's Banking Financial Supervision

September 2008,the U.S.subprime crisis broke out and turned into a world-wide financial crisis. The crisis damaged the U.S. financial markets very badly with a large number of financial setup going bankrupt due to involving in the subprime crisis,among the U.S.five investment banks,some went bankrupt, some were taken over by government, stock and bond markets fell sharply, the hedge funds and insurance markets have also suffered heavy losses, the U.S. economy entered a recession. As the bank's funds chains broke, the liquidity of funds was inadequate, the crisis of the financial sector has diffused to the real economy rapidly through finance and credit channels or the market expectations in the world, the damage of crisis also continuously increased by spreading, the subprime crisis brought the global financial markets an unprecedented disaster, caused global economy declining, and quickly influenced European Union and Japan, the world's major financial markets. Because of subprime crisis's impact, the Bank ran and suffered liquidity crisis, the economy has entered recession, consumption has descended, domestic investment continued shrinking, the unemployment rate growth increased rapidly, GDP's growth has obviously slowed down. Because the developed countries economic depression, it led to deterioration of the trade from a large number of countries including China which depends mainly on trade export. After the crisis broke out, the countries in the world carried out rescue measures but failed to avoid the spreading crisis.Today, just over a year,the crisis has completed damage from the finance impact to the entity, from the impact of difficulties from the regional to the global difficulties, risk from the external balance sheet to internal balance sheet,and many other aspects have deteriorated,took place qualitative change,too.Today,with governments taking financial assistance and economic stimulus measures, and the important thing is the rescue efforts and collaboration from all over the world,the economy has been recovering.At present,China's current capital market was not opened up completely,and the foreign investment is limited, therefore,China's banks were less affected by financial crises,then the direct losses of banks was limited, but we can not ignore the crisis of the warning. With economic globalization and the gradual deepening of financial integration, especially in today's "Dollar Hegemony",that is U.S. dollar is the central currency of the international monetary system, our banks have to guard and strengthen risk's prevention is of great significance.This paper, taking the U.S. financial crisis as a research object, first introduced the basic structure of U.S. mortgage market, especially the beginning and the developments in subprime loan market,then the paper went on to analyze the asset securitization and its derivatives in the mortgage market. On this basis,detailed analysis is made on the causes of break out of crisis and profound international background from the micro and macro aspects. Finally, based on the analysis of the causes of the crisis, obtained enlightenment to China's banking supervision.