Experiences Of Regulation On Systemically Important Financial Institutions In Other Countries And Implications To China

After the international financial crisis, many large financial institutions face difficulties in their business operation or go bankruptcy, as these financial institutions play an important role in the financial system, which have a large-scale, complex business relationships with other financial institutions and other characteristics, making a single institution’s risk conduct through various channels to other financial institutions, and having a severe impact on the financial system. After that, the international financial regulatory organization strengthen the research and put forward some regulation suggestions on systemically important financial institutions(SIFIs), Britain and other countries have also strengthened the supervision of systemically important financial institutions. Starting in 2011, the Financial Stability Board in accordance with the evaluation criteria proposed by the Basel Committee, released a list of global systemically important banks in November each year, Bank of China was included in the list in 2011, Industrial and Commercial Bank of China has also been included in the list in 2013. This not only shows that China’s major banks have some international influence, but also reminds the Chinese regulators to strengthen supervision of systemically important financial institutions(SIFIs).Because systemically important financial institutions(SIFIs) are in a key position in the financial system, its operational problems will increase the vulnerability of the financial system; and systemically important financial institutions(SIFIs) have huge asset in the financial system, they are easier to exacerbate pro-cyclical risk. Moreover, after the crisis, the government provide bailout to systemically important financial institutions(SIFIs) which triggered a " too big to fail " moral hazard, therefore systemically important financial institutions(SIFIs) give rise to social harm and it is necessary to strengthen regulation.International regulatory organization have done a lot of research about systemically important financial institutions(SIFIs), but the specific implementation of the policy measures have to rely on each country. As the financial crisis come from the U.S. they do some major adjustments to financial regulatory system; Britain suffered exogenous shocks during the crisis, and the financial regulatory system is relatively complete, so they have small reform; as European has limit regulatory power, they mainly promote the EU to strengthen financial supervision. From the current international regulatory organizations and national regulators proposed regulatory policy, regulatory frameworks for systemically important financial institutions(SIFIs) conduct has been basically formed. The first is to establish a full-time regulatory agencies, then establish evaluation criteria, and finally propose specific regulatory measures, including reducing the size, complexity, raised additional capital requirements, and the establishment of agency disposal system.Combined with the actual situation and the regulatory status of China’s banking sector, drawing on regulatory practices in other countries, this paper argues that China should improve the supervision of the legal system, strengthen supervision authority, establish systemically important banks(SIBs) evaluation criteria, make it a clear regulatory objects, and establish a sound recovery and disposal framework explicitly agency disposal system.