Research On The Supervision On Systemically Important Financial Institutions

Systemically important financial institutions (SIFIs) are institutions whose disorderly failure, because of their size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity.After the last international financial crisis,international financial regulation began to pay more attention to macro-prudential supervision. One important reform is to strengthen the supervision on SIFIs. Due to the systemic risks that these institutions pose to the financial system,systemically important financial institutions must be subject to more intensive oversight and resolution planning to reduce the probability and impact of their failure. The applicable resolution regimes and other measures are needed to ensure that SIFIs can be resolved safely, quickly and without destabilising the financial system and exposing the taxpayer to the risk of loss, while maintaining continuity of their vital economic functions.This thesis consists of three parts:introduction, body part and conclusion.The body part divideds into four chapters:The first chapter is "overview of systemically important financial institutions". From the perspective of macro-prudential regulation,this chapter introduces the background, definition and assessment methodology of SIFIs.The rationale for more intensive supervision on SIFIs is based on the negative externalities and moral hazard associated with them, which current regulatory policies can not fully address.The second chapter reviews the international experience of SIFI supervision. It makes an in-depth research on the SIFI supervision of foreign countries and international organizations,which mainly include FSB,BCBS,the US.,the UK.and the EU..The policy framework for SIFI supervision should include higher loss absorbency capacity,liquidity surcharges,tighter large exposure restrictions, levies, structural measures and effective resolution regimes.The third chapter discusses the SIFI supervision in China and analyze the deficiency of SIFI supervision in China.It argues that because of extensive sources of systemic risk,lack of effective financial regulation coordination,unsound internal risk management of SIFIs and lack of exit legal system, the current financial supervision system in China can not respond effectively to the systemic risks posed by SIFIs.The fourth chapter proposes some ideas and suggestions for the perfection on SIFI supervision in China.This thesis holds that precise assessment of SIFIs,improvement on financial regulation system,more prudential oversight of SIFIs and an effective resolution regime should be put in place.This thesis explores the supervision on systemically important institutions from the perspective of macro-prudential regulation.Firstly, it reviews the related theory researches and the latest progress of regulatory practice of SIFIs,which could enrich the current studies of SIFI supervision at home and abroad,and also can shed light on the perfection of SIFI supervision in China;Secondly,based on the situation of financial regulation in our country,it puts forward some applicable measures for a perfect policy framework of SIFI supervision,which would provide theoretical guidance and policy reference for the perfection of China’s financial legal system.