The Reform Of China's Financial Vegulatory System In The Context Of Subprime Mortgage Crisis

With the gradual advance of financial globalization, financial resources allocation efficiency worldwide to improve the world financial system but also has an increasingly significant vulnerability and instability. 90 years after the 20th century, intensified regional and global financial crisis on global economic growth thereby increasing the danger of the growing importance of financial regulation significantly. Western developed countries in 2007, the major outbreak of the subprime mortgage crisis have been hit to varying degrees, but the crisis intensified, eventually leading to the development of the world economy was stagnated, thus promoting the world's financial regulatory reform to become a major driving force. With the continued advance of opening up the financial industry, an increasingly open financial system will be conducted through various channels over the face of international financial market risks.This paper describes the classical theory of financial regulation (social interests theory,the prisoners theory and the supervision of economic theory) and the operation theory (theory of capital adequacy regulation, external regulation theory and theory of market discipline), based on detailed analysis of the sub-prime crisis After the United States and the European Union in the financial regulatory system, capital adequacy regulation, external regulation and market discipline regulatory deficiencies and the corresponding regulatory reform initiatives and measures to the concept behind the subtle changes, as the reform of China's financial regulatory system to provide decision-making.In this crisis, financial regulation in developed economies revealed the existence of common problems: the innovation of financial derivatives and other financial regulatory lag behind the actual development of the business itself; The risk of banks and other financial institutions lack of supervision; poor coordination between regulatory bodies, caused by the regulatory vacuum and the existence of regulatory arbitrage; supervision of systemic risk is too weak; financial mixed and sub-sector regulators have become increasingly prominent; Supervision of banks and the corresponding existence of cyclical deficiencies; of international cooperation in financial supervision be strengthened. In response to these problems exposed in the crisis, countries have carried out the appropriate financial regulatory reform. At present, the dynamics of international financial regulatory reform are: The regulatory philosophy, the place for the supervision of systemic risk in an important position and the establishment of macro-prudential framework; Credit institutions to strengthen the information disclosure mechanism to strengthen the protection of the interests of investors and consumers; a renewed emphasis on government intervention in the financial industry, emphasizing the establishment of a comprehensive crisis management plan; improve risk management requirements of financial institutions, emphasis on financial derivatives regulation; strengthen financial holding companies, regulatory agencies in the Mixed; reduce pro-cyclicality of financial institutions supervision, promote the establishment of counter-cyclical capital buffer and working to strengthen international coordination of financial supervision and cooperation.Despite benefiting from the crisis in the financial system is not fully open so that the direct impact of being small, can still reveal some problems, mainly in: The lack of macro-prudential framework for the regulation of systemic risk in the blank; Although the initial formation of the legal system of financial supervision, but still a blank field. For example: not yet established a deposit insurance system, the financial derivatives legal protection is not perfect. In addition, financial investors and consumer protection not in place. Yet to standardize and improve the daily risk of bank supervision, market withdrawal of problem financial institutions remained weak supervision, lack of institutional measures to regulate them. Separate supervision of the poor coordination between the various regulatory bodies, financial institutions, information disclosure mechanism is not perfect.Major countries and regions in the current world financial regulatory reform in China has an important reference for our problems, suggests: Establishment of macro-prudential regulatory framework as soon as possible to strengthen the supervision of systemic risk; improve the financial supervision of financial institutions legislation and information disclosure mechanisms, and effectively protect the interests of investors and consumers; banks and other financial institutions to strengthen the balance sheet of the oversight and strengthen the risk regulation; regulatory agencies to establish good coordination mechanisms to promote sharing of regulatory information; active participation in international financial regulatory coordination and cooperation.