Study On The Resolution Of SIFIs In The United State

The financial crisis in2007-2008had a huge impact on the global financial system,which made the real economy plunged into a severe recession. Although in manydeveloped countries, the economic recovery has been observed, but It is still necessaryfor us to think about the reasons of the crisis in order to prevent the future financial crisis.Among the reasons, the most important one is that more and more large financialinstitutions (mainly financial group) has appeared. By the end of2008, total assets ofsystemically important financial institutions had been more than42.9trillion U.S.dollars, accounting for70%of global GDP. Even in some smaller countries,such asIreland or Switzerland, the combined bank assets is several times the number of thecountry’s GDP.Compared to the great changes in the financial system, there is little differenceabout the world financial regulatory system,especially about the disposal mechanism.Agency must be disposed of, but " not any country has established an effective disposalmechanism to these large financial institutions "(Geneva Report,2011). In other words,the operation of these large financial institutions is more and more international, butthe regulatory and the disposal to them still remain at the national level.According to the current situation in China, the Bank of China has been listed in theG-SIFI that the FSB announced, and with the enhancement of China’s economic strengthand growth of of financial institutions, it is foreseeable that more financial institutionswill become G-SIFI and D-SIFI. On January8,2014, the China Banking RegulatoryCommission issued the " global systemically important commercial banks indicatorsdisclosure guidelines ",which required that if a bank had over1.6trillion yuan assets nomatter which was inside or outside the balance sheet or it had been identified as a globalsystemically important banks,it should report its global systemically importantcommercial banks indicators from2014. The introduction of this legislation means thatChina’s regulatory authority for systemically important financial institutions stepsforward, but it is still a long way far frominternational standards. Thus, there is ofgreat theoretical and practicial significance in the study to the systemically importantfinancial institutions disposal mechanism...