The Reform And Enlightenment Of The U.S. About Consumer Financial Supervision Mechanism

After the outbreak of the sub-prime mortgage crisis, it is generally consideredthat one of the most important reasons for this crisis is regulatory failure of the fieldof consumer finance. The U.S. Congress and government attached great importance toreform and strengthen the regulation of consumer finance, which has explored a seriesof regulatory reforms quickly. The new act Dodd–Frank Wall Street Reform andConsumer Protection Act reforms the financial supervision system, which focuses onstrengthening the prevention of systemic risk. The reform indicates some substantivecompromise between federal and state consumer finance regulation authority. Theeventual compromise will involve some degree of increased substantive regulation atthe federal level, as well as the protection of state consumer finance regulationenhanced at some degree. The U.S. expects to improve consumer finance regulatoryframework through the new law. In fact, the new law aims to create a federalregulatory entity with authority and strengthen the substantive regulation of consumerfinance at the federal level. At the same time, it attempts to enhance the stateregulatory authority and mobilize the enthusiasm of local regulatory to achieve thepurpose of preventing consumer credit risk effectively. This regulatory model ofdivision of labor and coordination is probably a perfect regulatory system. If we studythe current consumer credit regulatory reform of U.S., it will have an importantreference and enlightenment to China. Such as building a diverse and multi-levelfinancial regulatory system, improving risk coordination mechanism, distributing thefinancial regulatory authority between central and local reasonable and etc.