Changes In US Banking Regulatory Reform Since The1970s And The Enlightenment

The US banking supervision system established in the1930s. The financialsupervision system established after the great depression constantly improving in thesubsequent hundreds years,Suffering from all kinds of challengesmeanwhile.Domestically, there were stagflation in the70s and bank failures in80suntil the subprime crisis at the beginning of the21st century. From the internationalaspect,these challenges manifested as the first world war, the second world war, theLatin American debt crisis and the Asian financial crisis, etc.Internal and externalcrisis had prompted the U.S.banking supervision system constantly improvingitself,including the control of interest rate, production and restrictions.At the sametime it also contributed to the achievement of a number of international capitalagreement,including the Basel capital accord I, Basel II and Basel III.In the process of the development with various problems,we can draw aconclusion that the supervision deficiencies is what our Chinese banking supervisionneeds to avoid.And it is worthy to pondering and referencing that the performancewhen facing crises and challenges during its evolution.Chinese banking developedquickly in recent10years.It also can increase the possibility of risk.The reason whychoose the start as70s is that the U.S.banking sector in the70s is likely to the today’sChina,such as getting rid of financial mediation.Chinese banking industry is facingnew internal and external challenges.Domestically,the banking industry facing the riskof getting rid of mediation. From the international aspect,The development ofeconomic globalization is increasingly close contact with countries,that lead to theeconomy environment has become more easily influenced by other countries insteadof the closed economy environment before.The possibility of the global systemic riskhas increased.Now the Chinese supervision system contains the central people’sbank,the Chinese banking regulatory commission etc.The U.S. financial supervisionsystem’s development process also experienced separation, mixed regulation changeconstantly.So it is helpful to provide the reference to nowadays Chinese bankingsupervision and make up solutions and response to trouble that the bankingsupervision industry facing.To constantly improving the supervision system.