A Study On The Construction Of The Cooperative Mechanism Of International Financial Supervision

Finance contributes greatly to economic development and it is vital to the sustainable economic development of a country whether its financial system can be operated in a secure, stable and efficient way. With acceleration of globalization, human resource, materials, and information are mobilizing freely on a global scale, which has continually compressed time and space. The world is becoming a "global village". While globalization is promoting the development of the world, it also creates global problems. From the perspective of financial globlization, the conflict between internationalization of financial activities and localiztion of financial regulation has been revealed, which was mirrored by the occurance and spreading of global financial crisis. Against the backdrop of globalization, any individual country is incapable of preventing and tackling economic and financial crisis; therefore, the international cooridination and cooperation has become an imperative. The economic and fiancial interdependence has enhanced the policy spillover effects as well as has forced the international community to deepen the international coordination. A closer international cooperation of financial regulation is needed to guranttee its effective implementation.The dissertation adopted approaches of theoretical exploration and case study, based on the principle of combining logic and practice, to conduct an in-depth study of the construction of international financial regulation cooperative mechanism. The dissertation is divided into eight chapters. Chapter1deals with the introduction, in which the key concepts are defined and the domestic and foreign literature is reviewed; Chapter2is the presentation of related theories of constructing financial regulatory cooperation mechanism; Chapter3analyzes the necessity of the international financial regulatory cooperation using game theory, and proposes the position of the target of the financial regulatory cooperation; Chapter4puts forward the construction principles of financial regulatory cooperation organizations based on the analysis of the problems of the current financial regulatory cooperation,; Chapter5focuses on the direction and organization framework of the financial regulatory cooperation; Chapter6discusses the present situation of regional financial regulatory cooperation, and analyzes the mechanism of regional and global financial regulatory cooperation; Chapter7gives comprehensive analysis for China participating in international cooperation of financial regulation, and puts forward corresponding strategies; Chapter8is the summary of the whole text. Through the study, the following conclusions have been drawn:First, in the context of globalization, it is very necessary to strengthen international cooperation of financial regulation. The international financial regulatory cooperation should benefit all participants. It should be positive sum game rather than a zero-sum game. To achieve the goal and functional orientation of international financial regulatory cooperation, the construction of supervision mechanism (either formal or informal) is indispensable. Second, all the existing international financial regulatory organizations, whether it is the IMF, the World Bank or the bank for international settlements, international securities regulatory commission and the international insurance regulators association, have some flows in terms of governance structure, which hinders the parts it is supposed to play, hence they need improvements.Third, strengthening the cooperation of regional financial supervision is an important way to promote the cooperation of international financial supervision. Similarity of economic structure of all countries in regional economy will facilitate reaching concensus and improving efficiency. In the meantime, as an important component of international financial regulatory cooperation, the pioneering study in some areas can provide experience for global financial regulatory cooperation.Based on the literature, this dissertation concentrates on three areas by conducting innovative research:First, using the regulatory capital adequacy ratio of banking industry as research subject, the dissertation has developed a game model of the financial regulatory cooperation and demonstrated the necessity of the medium-and-long term cooperation in international financial regulation from the perspective of game theory;Second, it systematically summarizes the defects of the current international financial supervision organizations, puts forwards the function orientation and target of financial supervision cooperation, and designs the reconstructing organization system of international financial regulatory cooperation under G20framework;Third, the dissertation has conducted an in-depth study of China’s participation in international financial regulatory cooperation, and puts forward our country’s position and strategies for participating in international financial regulation.