Comparative Analysis On Institutional Change Of Financial Supervision In View Of The International Financial Crisis

Influenced by U.S. subprime mortgage crisis, global financial crisis intensified. For that reason,the financial supervision system is supposed to be re-examined and adjusted. Recalling all the major financial crisis, the major causes of the crisis lies in the defective international financial system.Therefore, detecting the evolution and suitability of financial supervision system-from the perspective of the financial crisis-is of great significance in reality. This article which aims the world's three major financial crisis classifies financial crisis according to the nature of financial crisis and finds out the relationship between the financial crisis and international financial supervision system, then provides policy guidance on the development and improvement of supervision system for China.Firstly, this article defines the concept of financial crisis on the basis of the the cause of the outbreaks,and divided financial crisis into three types:financial crisis caused by solid economic imbalances, financial crisis caused by international imbalance of payments and financial crisis caused by virtual economy bubble. Secondly, the article analyzes the evolution of the financial supervision system under the change of the nature of financial crisis.We suggests that financial innovation is the major force which propels the evolution of the nature of the financial crisis, then the evolution of the nature of the financial crisis determines the evolution of financial supervision system directly.We also hold that the evolution of the financial supervision system is divided into three phases according to the orientation of financial regulation goals,that is financial supervision system of safe priority, financial supervision system of efficiency priority and financial supervision system of stable and steady. Thirdly,we show a study based on the samples of U.S. financial crisis in 1929,1997 Southeast Asian financial crisis, and U.S. subprime mortgage crisis and analyze their characteristics as well as factors of financial supervision which raised crisis,then we find out the influences on the change of financial supervision system. Through comparative analysis,this paper shows that in order to prevent financial crisis of different nature, the countries which differ from financial development phases is supposed to take the appropriate financial supervision system to get a balance between security and efficiency,and to keep moderate financial supervision levels.Finally, the article proposes the countermeasures which improve the financial supervision system of China in view of the essence of the risk of financial crisis we faced under the recent global financial crisis.