Study On Institution Setup Of Macro-Prudential Regulation In China

In recent years, the discussion triggered by global financial crisis including financial stability, the relationship between monetary policy and macro-prudential policy is a profound reflection on the macroeconomic regulation theory, which is bound to lead breakthrough in its theory and practice. Macro-prudential policy aims to compensate the lack of micro-prudential policies handle systemic risk and maintain financial stability, in which theoretical research has transition from basic definition to the analysis of policy tools and policy collection. Macro-prudential institution setup is the top priority that needs to be solved in practice. According to the macro prudential policy development and implementation process of regulatory requirement analysis, this paper put forward related policy suggestions.First of all, this paper bases on the macro-prudential policy objectives and tools to conclude ideal macro-prudential institution power. Secondly, this paper analyzes the relationship of macro-prudential policy and monetary policy, then summarizes the policy roles that Center Bank performs. Finally, the paper analyzes the international representative organization setup mode to offer China’s macro-prudential policy advice combined with China’s situation.Based on all above, this paper puts forward suggestions on macro-prudential regulation institution setup as followings: First, set up independent macro-prudential regulation commission including PBC, MOF, CBRC, CSRC, CIRC, NBS and NDRC, which is responsible for the state council. Second, PBC performs a leading role in the commission to maintain the maximum balance between macro-prudential policy and monetary policy. Third, strengthen the accountability role of the state council and prevent intervene from interest groups on macro-prudential policy.