The Changes Of Financial Regulatory System In United States And The Enlightenment To China

The U.S. financial industry has been the core position in the global financial industry for a long time, and its financial regulatory system which is learned by the rest of the world has been regarded as a classic. Over the years, the U.S. financial regulatory authorities advocate to minimize government intervention and to active financial markets relying on the free movement of capital. However, a few years ago, the subprime mortgage crisis has exposed a major flaw of the U.S. financial regulatory system. These shortcomings impel the U.S. financial induestry and financial regulators to rethink the former, and to produce a latest siginificant financial regulatory reform. A comprehensive review and reflection of the historical changes in the U.S. financial regulatory system helps to accurately grasp the status of the U.S. financial regulatory system and its main problems, to deep understand of the need and the content of the current round U.S. financial regulatory system reform,and to indicate its impacts and gain enlightenments.From the anlge of institutional economics, the paper sorts out and analyzes the historical changes of the U.S. financial regulatory system.By the analyzing, the paper draws a conclusion that the U.S. financial regulatory system changes show that the regulatory strength and financial liberalization intensity has been alternating spiral state, This spiraling process is full of the amount of change and the qualitative improvement. After collecting the relevant datas of U.S. financial institutions in2002-2009, the paper calculates the systematic risk of the financial system in the United States by using the CAPM. The results show that during the period2002-2009, μi reflecting the value of the systematic risk of the U.S. financial institutions changes in a U-shaped, but in2007-2009, the average of the systematic risk of the U.S. financial sector is very high. The accumulation of systematic risks in the short term show that the regulaters emphasize too much on the concept of market supervision, neglect that the nesssary regulating subjects, and exist different regulatory standards and supervision of the main cross. Imperfect financial regulatory system and the financial crisis broke out in2008gave birth to the Dodd-Frank Act which is on behalf of the new financial regulatory system in the United States. This new bill emphasizes on macro-prudential supervision of the financial industry, financial stability and the consolidated supervision of systemically important financial institutions,and the regulation of derivatives and hedge funds.It also establishs a national insurance regulator, emphasizes to protect the rights of financial consumers,re-configures the right to financial regulators and enhance the Fed’s regulatory rights. The new U.S. financial regulatory will profoundly affect the U.S. financial industry as well as the development trend of the global financial industry. China’s financial supervision can gain useful insights form the reform of the U.S. financial regulatory system, adheres to a combination of macro-prudential and micro-prudential supervision, and establish the financial regulatory system to prevent systemic risk, the coordination mechanisms of the financial regulators and the early warning system of risks.