Research On Counter-cyclical Financial Regulation In China

In recent years, the pro-cyclicality of the financial system is one of the important causes of financial imbalances and financiai fragility, and eventually lead to the international financial crisis. The occurrence of the financial crisis has caused widespread concern in the academic community on how to solve the financial system pro-cyclicality. Counter-cyclical financial regulation is considered as the pro-cyclicality of the financial system of regulation. Promote the counter-cyclical financial regulatory reform has become one of the core issues of international financial reform. In the context of rapid economic development in China, how to build counter-cyclical financial regulation in China, establishing a counter-cyclical regulatory model for China’s national conditions, becomes an important task of China’s financial reform. The reasons for the formation of pro-cyclicality of the financial system and the counter-cyclical financial regulation policy were analyzed in this paper. This paper presents the design of counter-cyclical financial regulation framework in China, as well as specific implementation requirements. It is useful to enhance our counter-cyclical financial regulation, and to promote the sustained and stable development of financial markets.The article includes six chapters as follows:The1st chapter introduces the research background and significance, combing the existing domestic and foreign literature on counter-cyclical financial regulation, determines the structure and research methods of this article.In the2nd chapter, the paper starting from the financial system along the periodic definition, analyzes the formation mechanism of the financial system pro-cyclicality, pointed out the financial system’s pro-cyclicality impact on the real economy.The3rd chapter centralized investigated in the international community before and after the crisis on the status and progress of the counter-cyclical financial regulatory reform. Spain’s dynamic provisioning system, the financial regulatory reform of the United Kingdom and the United States and counter-cyclical capital regulation under the Basel III.The4th chapter analyzes China’s financial system pro-cyclicality, and verified by experiments of our financial system to the presence of pro-cyclical.The5th chapter expounds China’s counter-cyclical capital regulation index options, as well as empirical analysis based on the selected indicators, in order to verify the reliability of selected indicators. This part analyzes the difficulties faced in the implementation of counter-cyclical regulatory capital, and the impact of the implementation of counter-cyclical financial regulation in China.The6th chapter advances the establishment of China’s counter-cyclical financial regulatory system, based upon the situation of our country. Including build warning system, improve the organizational structure of our regulatory system, the introduction of regulatory tools, the reform of the salary management system, the establishment of a deposit insurance system, regulatory reform of credit rating agencies and so on.