| The international financial crisis in2008proved that the sum of the micro-prudential management is not equal to macro-prudential management. Maintaining financial stability should not only concern about the risk of single financial institution or single industry, but from the macro or the overall perspective to prevent systemic financial risks. Therefore, there is an urgent need to establish a complete set of theoretical systems, governance framework and policy tools of macro-prudential management, to prevent systemic risk which comes from widespread contact between economic and financial collective behavior of financial institutions, and to maintain the stability of the entire financial system. At present, financial macro-prudential management is still in exploration, its specific organizational structure, coordination mechanisms, policy options, implementation tools, etc, are still have many differences and disputes. Moreover, the financial management system, organizational system, market structure, financing structure of each country is different, so the path of its implement macro-prudential management is different. Therefore, our country establishing macro-prudential management system still requires a lot of theoretical research and practical exploration.This paper is starting at the theoretical research of macro-prudential management, learning macro-prudential management practice from major international financial organizations and economies, and it drawing focus on macro-prudential management combine with national conditions of China. It’s using comprehensive analysis method, combining literature research with empirical research, quantitative analysis with qualitative analysis, including economics, finance, regulatory, legal and other multi-disciplinary.Since the1980s, the micro-prudential supervision which based on minimum capital requirements has gradually become the mainstream of national banking supervision practices. But the last2decades, although the micro-prudential supervision continues to strengthen, the intensity of financial crisis has still enhanced. This paper discusses the limitations and shortcomings of the micro-prudential management. Through comparing the difference among macro-prudential management, micro-prudential management, macro-financial regulation, risk management of financial institutions and other financial management systems, it defines the concept, essence and purpose of macro-prudential management. The paper highlights macro-prudential management framework from the macro-prudential analysis, macro-prudential policy, macro-prudential tools, etc. At the same time, the central bank as issued bank, bank of banks, government bank, has special important position in the financial and economic system of a country. Through briefly review the essence and responsibilities of the central bank, this paper want to seek the theoretical and legal basis for the central bank to take responsibilities of macro-prudential management, and clarity its functional orientation.Since the international financial crisis outbreak, the major international financial organizations and the economies have strengthened macro-prudential management. This paper reviews the exploration of Basel Committee on Banking Supervision(BCBS), Bank for International Settlements(BIS), the Financial Stability Board(FSB), the International Accounting Standards Board(IASB),and Securities and Futures Commission (SFC) on developing macro-prudential standards; studies the practices of United States, UK, France and Germany at the macro-prudential management; analyzes typical macro-prudential tools including the dynamic provisioning system in Spain, special treatment mechanism of troubled banks in the UK’s. It forms the inspiration and reflection of the macro-prudential management on the basis of comparative study; First, it must improve the macro-prudential management framework;second, the central bank must play as a core in the macro-prudential management; third, needs to implement a wider range of macro-prudential supervision; fourth, actively explores regulatory measures to deal with pro-cyclicality of the financial system and systemically important problem; fifth, establish effective disposal mechanisms of financial risks and response mechanisms to crisis.Because each country has different national condition, the system design of its macro-prudential management is also different. Therefore, China’s macro-prudential management must consider the macro-initial environment, designs the system combined with its conditions, but not copy the experience of foreign countries. In our country’s situation, the economic and financial have significant pro-cyclical features, and due to the inherent vulnerability of the financial system, it’s easily leading to financial risk, and this improve an objective requirement for China’s implementation of macro-prudential management. At present, China’s financial management organizational system is base on the function of PBC,CBRC,CSRC,CIRC and SAFE. As in organization, it manages banking institutions, non-banking institutions and other quasi-financial institutions; from the subject matter of the transaction, its management includes money market, capital markets, financial derivatives, foreign exchange market, insurance market and the gold market. In the practices of macro-prudential management, China has explored to implement dynamic adjustment of differential deposit reserve, capital adequacy ratio and dynamic provisioning, etc. See the example as Ganzhou of Jiangxi province, the implementation of the macro-prudential policy tools effectively produced counter-cyclical regulation and prevent the risk of systemic financial institutions. But on the other hand, the relevant policy tools in the specific operation, still have some problem including subjectivity, lack of scientific and rigor, etc, needs further refined and improved.Macro-prudential analysis system, tools innovation of macro-prudential management, systemically important financial institutions supervision, disposal of problem financial institutions, etc, are the important part of macro-prudential management system framework. Among them, the macro-prudential analysis is the core and foundation of macro-prudential management, and focus mainly on the representative indicators which reflect macroeconomic healthy and monitoring indicators which reflect the financial institutions especially banks. In order to improve information data quality of macro-prudential analysis, it should promote the standardization of financial statistics. In the aspect of macro-prudential management tools, it should improve counter-cyclical credit regulation mechanism including dynamic provisioning and loan provision policies, implement the deposit insurance system, improves the function of central bank lender of last resort. In the supervision of systemically important financial institutions, it should combine quantitative judgment and qualitative judgment method, the quantitative judgment need to consider scale, relevance, substitutability, complexity and other indicators, the qualitative judgment needs to consider the corporate governance of financial institutions, internal control mechanisms, risk management capabilities, risk transfer pathway and other factors. In the disposal of problem financial institutions, it should improve the legal system of risk management in problem financial institutions, achieve market-oriented and diversification in modality of financial assistance, and weaken administrative interventions, aggrandizement market means.To build the framework of a country’s macro-prudential management, it needs to consider macro-prudential analysis, macro-prudential policy and macro-prudential tools and other technical factors, but also affect or constrain by a country’s environment. Therefore, in order to construct the Chinese localized framework of macro-prudential management, it musts further deepen financial reform and address the bottleneck restrict of management system, organization system and market structure and other aspects. In the current, our country strengthens macro-prudential management, faced with the terms of the supervision authority is not clear, lack of effective monitoring and coordination mechanisms, the core status the People’s Bank of China is not conspicuous, the financial market develops insufficient, weak supervision of mixed operation, etc, urgent needs to resolve. Specifically, in the financial management system, it needs to establish and improve China’s macro-prudential management legal system to enhance domestic macro-prudential regulatory standards, establish long-term mechanism for communication and coordination among macro-prudential management departments, strengthen the coordination mechanism of China and other countries in the world on macro-prudential supervision; in the financial organization system, it should build the cross-sectional macro-prudential management committee, strengthen the organic combination of micro-prudential supervision and macro-prudential supervision, highlight the status and role of the PBC in financial macro-prudential management, improve duties of the Ministry of Finance in promoting financial stability and crisis assistance; in the financial market development, it need to encourage the establishment of a variety of types and different levels of financial institution system, actively develop diversified, heterogeneous financial business models and business types, and lay a Solid Foundation to guard against systemic risk.The innovation of this paper is mainly reflected in three aspects:First, form systematic theory. Macro-prudential management is a concept proposed from the practice of financial management policies, and in present it mainly focused on policies and tools, its theoretical framework is not perfect, especially relative to the theory of financial regulation, risk management theory of financial institutions, monetary policy theory. Macro-prudential management lacks of solid theoretical foundation, its research on the nature of macro-prudential management, the relationship among macro-prudential management, micro-prudential management and monetary policy, the central bank’status and role in macro-prudential management is still relatively weak. Through literature review, comparative analysis, experience learning, this paper improve the theoretical framework, conduct feasibility studies on the status and role of the central bank in the macro-prudential management, and strive to achieve the theoretical system of macro-prudential management.Second, the practice implement in China. Seoul summit of G20formed the basic framework of macro-prudential management, and it has been approved by the G20summit, required the member countries to implement. At present, international organizations and major countries also actively explore macro-prudential reform and build the basic framework for macro-prudential regulatory. Promoting relevant experience and recommending it to implement in China is an urgent problem which need to resolve in establishing the framework of the macro-prudential management system, and it’s the innovation that this paper focus on.Third, test practices on macro-prudential management of China. At present, the research on macro-prudential management is mainly focused on the theory and framework design, but few on specific management policy. And effect of practice is an important standard to test the scientific of theory and the rationality of framework. Therefore, this paper attempts to take Ganzhou city of Jiangxi province as samples, focusing on testing dynamic adjustment of differential deposit reserve policy, capital adequacy ratio regulation policy and the implementation effect of dynamic provisioning policy, and provide empirical reference for the construction of macro-prudential management in China. |
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