The Study On China's Post-crisis Macro-prudential Management System

After this round of the international financial crisis, the causes of the crisis have been profoundly speculated at home and abroad. Prudent macroeconomic management should be included in the macro-control framework, which is one of the most important conclusions. China's monetary authorities should also conform to the direction of macro-control and international financial regulatory reforms.While achieving the balanced multi-objective monetary policy, the authority should pay more attention to systemic risks than ever and take effective measures to prevent and resolve them.First this paper theoretically analyzed the connotation of macro-prudential management and systemic risks, and the emphasis on prudent macroeconomic management is in that there is obvious mistakes in the current macro-level control mechanism.There is shortcomings in the traditional micro-prudential supervision,and the market mechanism failure on motivation, information asymmetry and coordination disorders. Further the macro-prudential management needs establishing strategic goals at different levels including strategic goals, efficiency goals and objective of the report. From the perspective of alternative policy tools, the primary macro-prudential and operational schemes should be protecting financial system from cyclical effects,and guarding against systematical risks.On the basis of analysis of macro-prudential management policy tools, targets principles and institutional arrangements,this paper presents the main macro-prudential management approach, emphasizing identifying the systematical financial risks from the two dimensions of the the cross-section analysis and time series analysis,and further macro-prudential policy management tools should be subdivided into preventive management tools and counteracting management tools.The former mainly assess the potential systemic risks in the financial system, in the meantime taking conventional policy tools to ease and defuse the risks of accumulation and transmission.The latter mainly focused on taking counteracting measures to prevent isolated incident from turning into a systemic financial crisis and macro output losses.This paper systematically analyzing the nature of macro-prudential financial regulation,namely the implementation of differential financial conrol. The differential macro-prudential financial regulation exists at all levels.During the process of China's economic transition, due to the rigid structure of industrial sectors and lack of development in market mechanisms, there are non-equilibrium effects of monetary policy,which results in the financial resource imbalance in the real sector.The imbalance exacerbated the conflict of China's economic structural problems,and caused asset bubbles,credit structure concentration, credit risk assets, and other issues.The author clearly pointed out the four goals of differentiated financial control and specific differentiated macro-control measures targeted financial institutions and industry,and made statistics and case studies by examplifying the counter-cyclical capital buffer, differentiated reserve policy, policy interest rate differential and real estate control.Finally, based on the actual situation of China's central bank obligation requirements and the characteristics of macro-prudential management,the paper suggested the position of the central bank in the macro-prudential regulatory framework should be established,and supervisory rights on systemically important financial institutions should be endowed to central bank. As the micro-prudential and macro-prudential supervision is an organic whole, they are indispensable. To ensure the quality of regulation, regulators should develop a clear regulatory objectives more clearly, establish macroeconomic regulatory conception,enhance macro policy level, and further improve the regulatory system. In addition, based on the prominent effect of the differential control policy on China's economic development, China should continue to promote the differential control policy in order to realizing the goal of promoting the financing of vulnerable sectors, inhibition of advantages over-financing, preventing and resolving asset bubbles, and resolving the credit risks.