Under The Background Of European Currency Integration And Financial Supervision

The financial industry is the lifeblood of economic activities and thus of key importance to economic development. The financial regulation has gradually evolved in response to financial fluctuations and crises. It is a regime developed by the government to ensure the financial stability through establishing regulatory agencies that regulate and supervise the business activities engaged by financial institutions. The objectives of financial regulation include safeguarding public confidence in the financial industry, protecting depositors, improving the efficiency of the financial system as well as controlling the overall risks. Those financial regulation theories stemmed from past experiences of dealing with financial crises and maintaining financial stability.Under the circumstances that Breakthroughs have been made in the European monetary integration EU constantly circumstances, how to refine and improve the corresponding regional financial Supervisory system, make a favorable macroeconomic environment to European political unity, has become a major problem faced to all the EU institutions and member states. This paper basing on the theory of the evolution of financial regulation, analyzes the evolution of financial regulation.The first part, introduce the historical process of the European currency integration. The evolution of the European currency system is a gradual process taking the economic integration as the foundation. The Member States concentrated on building a 'common market'. However, over time it became clear that closer economic and monetary co-operation was desirable for the internal market to develop and flourish further. From the creation of European currency, 15 member states of European Union replace their old national currencies by a single currency euro. This transfer is a tangible symbol of economical identity and political sovereignty.Part 2 it's mainly the definition of the relevant concept theory survey about financial supervision. There's also the comparison of the financial supervision mode, such as in U.S.A., Britain, Japan, etc., introduced three kinds of supervision modes in the world, their characteristic, the advantage and deficiency.Part 3 introduces two representative EU countries-Britain and France's financial supervisory system and analysis the evolution of EU member states, financial supervisory system. Shows that EU countries will make integrated regulation to be optimal choice, and make efforts to establish an integrated regulation in the EU area.Part 4 and part 5 analyzes the factors that impact the evolution of EU countries'financial supervisory system, points the necessity of establishing a financial supervisory system in the EU area. And then proposes a reasonable framework for the realization of integrated regulation in the EU area.Part 6 provides some policies on supervisions of financial conglomerate in China using references from EU.