Financial Regulatory Mechanisms For International Cooperation In Crisis Conditions Studied

In the background of financial crisis, each country is concerning about how to deal with financial crisis and how to recover from it. International cooperation of financial supervision in crisis (ICFSC) is consistent with such a historical background.This paper starts with the theoretical analysis. Financial fragility theory, public goods theory, the theory of moral hazard, information asymmetric theory and externality theory all explain that financial industry need to regulate. Hamada model and the theory of international mechanism show that international cooperation is needed in financial supervision. On this basis, the history of international cooperation in financial supervision proves that the mechanism of ICFSC is indispensable and is developing.The analysis on financial crisis in Mexico, Southeast Asia and Subprime Crisis illustrates though the ICFSC has played a role in dealing with financial crisis, it also has some problems, such as it is led by western countries; it is not flexible enough and the scope is narrow. The paper offers some suggestions to solve the above problems. The status and the right to speak of developing countries can be improved. More precise policies can be put forward. The scope of cooperation can be expanded. A warning mechanism can be set up. And regional financial supervision can be strengthened.At last, the paper analyzes the role of China in the mechanism of ICFSC. As a rising power in the world, China shall play an important role in the future. China should raise the share in the IMF; participate actively in the international financial system reform, the crisis warning mechanism construction and the regional financial cooperation in East Asia.