The Enlightenment Of American Financial Supervision System To China

As one of countries in the world with the most developed financial market and most complete supervision system,it has undergone a tortuous reform of its financial supervision system in a series of financial crisis and innovations.The changes of US financial supervision system before subprime crisis experienced four important periods: the free supervision period before the 1930 s witnessed the establishment and closure of the US First and Second Banks,the establishment of double-supervision banking system and the Federal Reserve System;Glass-Steagall Act promulgated during the period from the 1930 s to the end of the 1970 s due to the Great Depression of the United States,marking the arrival of the era of separate supervision;From the 1980 s to the 1990 s,due to the “stagflation” and emergence of financial innovation activities,the US government was urged to promulgate “Banking Law of 1980”,which enabled the supervision authorities to relax control in economy and began to shift to market regulation;The outbreak of crisis of the savings and loan association turned financial supervision to a macro-prudential perspective.The promulgation of Financial Services Modernization Act marked the arrival of the mixed operation era.By analyzing China's financial supervision system,we can conclude that China's supervision system had achieved many achievements in the past two decades.At the same time,there are many prominent problems,mainly include backward and single supervision methods,power conflicts among supervision agencies,lack of communication mechanisms,low supervision levels,inadequate supervision bodies,and supervision rules are contrary with trends.By combing the development process of US-China financial supervision system,we can compare and analyze the differences between the supervision systems of the two countries,mainly include four main respects: supervision subjects,supervision legal basis,supervision measures and supervision targets.Furthermore,it provides advice to China's financial supervision system,mainly include following respects:1.Improve supervision methods and means,include completing beforehand prevention mechanisms,raising awareness of risk prevention and control;completing risk assessment and warning systems;and innovating financial supervision methods.2.Establish and improve supervision coordination mechanism,include strengthening communication and cooperation between domestic supervision agencies and foreign supervision authorities;ensuring the independence of the central bank and its domestic position in the banking supervision system;and strengthening information exchange and sharing.3.Encourage financial innovation while strengthening financial regulation,include encouraging commercial banks to develop intermediary businesses;and standardize the regulation of financial derivatives.4.Improve laws and regulations,and unify supervision rules,include improving the supervision system which is in line with the development trend of China's financial markets;and improve the legislative level and operationality of supervision laws.5.Improve the self-discipline level of the industry and the quality of supervisions,strengthen investor education,and mobilize social forces,include strengthening the self-discipline management of the industry,attaching importance to the supervision of personnel training;improving the quality of participants in economic activities;and introducing social supervision.