Research On The Framework Of International Financial Supervision

There is not formal international law in the field of international financial supervision. The Basel Accord is some kind of soft law and it's not binding for member countries. The global financial stability is the common goal for the international community to achieve financial cooperation, but it's hard to reach a binding financial agreement for the countries who need a stable financial market, because a binding agreement will limit the national sovereign. At the same time, the soft law is very suitable for such a situation.The different features of different financial market make the difficult situation to achieve a binding agreement to regulate global financial market. Even for the soft law, there is still many obstacle to overcome in order to achieve the efficiency.The current financial framework like Basel Accord is formulated step by step. The first step of such an improvement is the discussion and negotiation in the international forum like G20 then reach a common sense about the financial framework. The step is that the international institution like BIS to follow the discussion of the forum to propose a plan for financial framework improvement. The third step is for national countries to turn these new reform into their national law.The main international financial institution include Banking for International Settlement(BIS) and especially the Basel Committee on Banking Supervision under its management, International Organization of Securities Commissions(IOSCO), International Association of Insurance Supervisors(IAIS). On the level of national financial framework, there is separate regulation and mixed supervision model, but no matter what the framework model is,the essential element is that the cooperation and share of information between sector supervisors.The ultimate purpose is to cope with the challenge from the financial globalization, and the accompanied negative effect like the complexity of financial instrument, the convergence of financial function, and the opacity of new risks.The Basel Accord and other rules are the achievement of these endeavours, but to what extent the new reform can make the market stable, we still need wait and see.