Study On The Countermeasure Of Perfecting China's Financial Macro-prudential Regulation

The outbreak of the international financial crisis in 2008 has sounded a warning to all countries that micro-prudential regulation is not enough to effectively maintain financial stability.After the crisis,facing more and more macro-economic risks and the accumulation of financial vulnerability,turning the regulatory perspective from micro-prudential to macro-prudential provides a new direction for the financial regulatory authorities of all countries.Although China has not suffered significant losses in this round of global crisis,the frequent fluctuations of financial markets and the accumulation of risk factors also show that the systemic risks existing in our economic and financial system can't be ignored,and the prevention of systemic financial risks and the maintenance of financial stability should rise to the national level.Therefore,China's regulators are actively promoting the reform of financial regulation system,establishing counter-cyclical regulation mechanism,and have initially formed a Dual-Pillar regulatory framework of "monetary policy+macro-prudential regulation",firmly holding the bottom line of no systemic risk.However,at present,how to improve the macro-prudential regulation is still in the exploratory stage.Based on this,this paper takes the effectiveness of China's financial macro-prudential regulation as the core,and explores the countermeasures to improve China's financial macro-prudential regulation by studying the theoretical and practical aspects of China's regulatory framework.Firstly,this paper expounds the necessity of implementing macro-prudential financial regulation in China from the perspective of theoretical background and practical basis.The insufficiency of micro-prudential response to systemic financial risks and the impact of various risk factors that China is facing determine that China needs to implement macro-prudential financial regulation.Then,on the basis of summing up the practical experience of international organizations,this paper reviews China's gold industry.This paper introduces the current situation and characteristics of China's macro-prudential regulation,and then introduces the system of China's financial macro-prudential regulation from three aspects:the objectives,tools and the process of its implementation.Finally,this paper takes the differential deposit reserve ratio and capital cushion as the representative of macro-prudential regulation tools,and establishes a dynamic panel model to test the effectiveness of macro-prudential regulation in China.The results show that:(1)At present,the differential deposit reserve ratio and capital buffer tools implemented in China are effective,playing a role in preventing systemic risks and maintaining financial stability.However,macro-prudential regulatory tools will achieve the goal of maintaining financial stability through specific channels of action,and appropriate regulatory tools should be selected according to regulatory operational objectives and intermediate objectives.(2)The current macro-prudential regulation policy and monetary policy in China have not produced the expected synergistic effect.Although the combination of macro-prudential regulation policy and monetary policy in China has not changed the direction of policy,it has not produced the expected complementary and coordinated role,or the phenomenon of stimulating the effectiveness of a tool,instead,there has been an unexpected policy offset.(3)Although China's financial system fluctuates occasionally,it can maintain normal operation without systemic risk,but the implementation effect of comprehensive financial macro-prudential regulation is generally effective,especially the "unexpected effect" of policy mix is significant.Based on the empirical test and the practical experience of our country,this paper argues that in order to make full use of the financial macro-prudential regulation to make up for the deficiencies of the original financial regulation system and to form the effectiveness of policy cooperation in maintaining financial stability,we need a complete set of systematic risk monitoring mechanism to accurately identify risks,as well as a sound macro-prudential regulation policy framework to prevent and defuse risks.To improve this framework,we need not only to innovate regulatory tools and rules,enhance coordination between policies,but also to strengthen the regulation of systemically important financial institutions,develop expected management theory,expand international horizons,and better safeguard China's financial stability and national interests.