The Cause Analysis Of International Finanacial Regulacial Mechanism’Informality

Since the1970’s, financial globalization has become an important and significant feature of the world economy. But the international financial system are born to be unstable, easily into crisis. Under this trend, effective international financial regulatory cooperation is very necessary. Today’s international financial supervision and regulation mechanism is informal.Why international financial regulation form the controversial informal mechanism?This article attempts from the domestic level and international level two sides, analysis the cause of international financial regulation informal. Domestic level:Because of the difference beyond their financial supervision mechanism, and for the maintenance of their own national interests, other countries relative to the strict and formal regulation mechanism, tend to informal mechanism which is more flexible. At the international level, because of the United States’strong market power, and other countries’path dependence of American financial innovation, the United States plays a leading role in the establishment of the international mechanism. Therefore established international financial regulation to a certainly extent, reflects the preference of liberalism in the financial sector. On the other hand, in the choosing of formal and informal, in the game of rational countries more likely to choose informal international mechanism which do not force to implement relevant agreement in the short term.