The Practice and Enlightenment of International Financial Regulation Reform After the Global Crisis

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Fourthly, give necessary policy instruments to the governments to response to the financial crisis. Establish a new mechanism, which makes the government to decide how to deal with the non-bank financial institutions that may lead to the system risks. The government has the right to take over and break up the troubled big financial firms to avoid them collapse and then endanger the economy as a whole, and the Federal Reserve needs the permission of treasury before it providers the emergency financial aid to the enterprise.

Fifthly, establish the international regulatory standards and promote international cooperation. Reform enterprise capital framework, and strengthen the regulation of international financial market and the supervision of multinational enterprises' cooperation.

The UK constructs a new financial regulatory framework.

First, we will make more thorough and systematic financial regulatory reform plan. Strengthen further protection of financial consumer in order to enhance the public's confidence in financial markets and financial services. Since 2008, the British government has significantly increased the importance of financial consumer protection, and announced financial stability and depositor protection: strengthening the framework and financial stability and depositor protection: special resolution regime.

Second, repeal the financial services authority, and its function spin-off from the Financial Conduct Authority and Prudential Regulation Authority. FCA as an independent agency, is directly responsible to the ministry of finance and the British parliament and supervise the behavior of about 26000 financial institutions. At the same time it supervises the prudential supervision of about 23000 financial institutions which are PRA’s outside the scope of the Regulation; PRA as an affiliate of the bank of England, is responsible for the prudential regulation of depository institutions, insurance agencies and systemically important investment company.

Third, the regulatory reform further strengthens the protection of financial consumers' rights and interests, and pays equal attention to the financial consumer protection and prudential regulation. The financial consumer protection functions separated from prudential supervision institutions, and it avoids the internal conflicts of prudential regulation and financial consumer protection.

- The enlightenments our country can acquire

Firstly, give full play to the foreseeable role of financial supervision and regulation. Regulators need to supervise the whole process of financial institutions, being based on the principle of prudent supervision, founding the problem in advance, taking timely measures to prevent and control financial risks.

Secondly, build the social credit system. At present our country's credit system is imperfect, and credit consciousness is weak. Government must start from the normative and perfect social credit monitoring system to construct bank account management system, individual credit reporting system, pay credit monitoring system and payment transaction monitoring system and anti-money laundering monitoring system. Accurately record the bad credit information of issuing a check or using bank accounts to flee to borrow, dodge a creditor, evade taxation and launder money and ultimately achieve the goal that financial institutions, regulators and law enforcement agencies can share information. In addition, play a role of the supervision of public opinion, and establish credit "blacklist" system to publish to the society and strive to build an honest and trustworthy atmosphere.

Thirdly, strengthen financial supervision and regulation legal system construction. Although our country has developed some financial regulations, such as the people's bank of China, commercial bank law, securities law and audit law, security law and accounting law, the financial supervision must be strengthened. It should have very clear penalties and established rules for violations and illegal behavior and establish rules of industry access and exit.

Fourthly, enhance the transparency of financial regulation. Financial regulators should publish regulatory information regularly and it can also act as a warning to other financial institutions. Besides, play the supervisory role of accounting, auditing and law firms to supervise the operation and management of financial institutions.

Fifthly, constantly reform the supervision system. With the foreign financial institutions entering, the mixed operation is the trend. The regulatory system should change along with the change of the regulated object, and establish a more focused and more coordinated regulatory system. Our idea of this supervision system is to separate the proactive regulation and supervision and post-mortem supervision. The people's bank of China responsible for financial institutions market access supervision and that is the proactive regulation and supervision; Set up financial supervision bureau directly under the leadership of the state council to responsible for the on-site audit inspection of banking, securities, trusts, insurance and other financial institutions, namely post-mortem supervision.