Systematic Importance Of Financial Institution Supervision Research

In the wake of the financial crisis, macro-prudential regulation framework isdrawing more and more attention. In view of the devastating effect some largefinancial institutions’ bankruptcy has on the overall financial system, the internationalcommunity began to conduct a series of regulatory reforms of systemically importantfinancial institutions since2009. G20, FSB, BIS, BCSC and a group of internationalinstitutions or organizations published reports on this. Besides, national regulatorsalso went through reforms based on their own national conditions, building moreperfect domestic regulatory framework.China’s financial market is not as complete as the developed countries’, and hasmore stringent regulatory policies. Following international practice, China is activelyexploring to adapt its regulation to the domestic financial market development, whichhas achieved initial progress.Based on clear regulation logic, this paper trails back systematically internationaland domestic regulatory framework development, and introduces country-specificregulatory experience, such as American and British. Using the methodology ofqualitative analysis and quantitative analysis, the paper will first give a briefintroduction to the achievements and problems in China’s SIFIs regulation, andidentify D-SIBs through the index method and CoVaR model. Recognized that thereare still many unfinished things with the regulation of systemically importantfinancial institutions in China, with international experience for reference, this paperfurther give some proposals and suggestions.