Informal Mechanisms Of International Financial Regulatory System

In the era of financial globalization, it has become a common concern of countries how to resist their financial risks and prevent financial risks in the spread between countries. Accompanied by constant strengthening of national supervision sense, the international cooperation system of financial supervision has developed since 1970s and it is increasingly mature.This article firstly sorts over theories of international regimes and the main theoretical schools in this field, as well as the formation of informal international regimes. Secondly, I made a historical review on the international economic system and financial supervision regimes and the breakthrough in recent years, which leads to "Basel Accord" as a case study for my thesis. The third part is a historical review on "Basel Accord" which contains its background, formation and optimization procedure. Furthermore, I made a further analysis on the "Basel Accord". I defined "Basel Accord" as an informal regime according to its content, and then I discussed the advantages of this informal regime from four aspects which are the balance on several levels, the regularity of international cooperation in financial supervision, the interactive process of the ideas integration and rule-making and the reduction of uncertainty. I also analyzed its disadvantages from four aspects which are the non-binding on its compliance, the ambiguity of its provisions, the difference between its objectives and scope of member countries, as well as the shortage on its management measures. Last but not least, I summarized the important influence and limitations of "Basel Accord" for international cooperation in financial supervision system, and its characteristics and significance as an informal international regime.