Reflections And Countermeasures On Financial Regulation After The Subprime Crisis

The subprime mortgage crisis erupts in2007, making the financial market of theU.S. happening great changes, the economy of the U.S. has entered the decadentperiod, while the world economy have been varying degrees of decline. The outbreakof the subprime mortgage crisis, the reason we call it the subprime mortgage crisisfrom a word meaning explained above is that caused because of subprime loans,which began in the U.S. real estate, and then the real estate market through financialderivatives innovative spread to capital markets, making it spread from the financialmarkets to the real economy. Because of the subprime mortgage crisis, globalfinancial markets have been suffered heavy losses, many large financial institutionshave closed down or been merged. From the point of view of the crisis, the financialregulators can not shirk its responsibility, because laissez-faire financial regulatoryagencies or lack of supervision that led to the crisis, experts said that the bestregulation of financial markets is laissez-faire, this time the crisis has given a blow tothis argument. Therefore, the world economies begin to take various measures tofinancial regulation.This paper uses a comparative study, normative analysis and historical analysis toanalyze for the article. This article is from the subprime crisis that exists between therelationship and the financial regulation departure. The paper analyzes the theoreticalbasis of financial supervision, explains why the crisis occurred and the impact of thesubprime crisis, the crisis broke out in the financial regulation missing. Followed by adetailed analysis of the characteristics of the sub-prime crisis before major developedcountries the United States, Britain and Japan, the three countries performed by arepresentative of the financial regulatory system, when after the crisis, they havetaken different financial regulatory reform according to their own circumstances, suchas the U.S. Dodd-Frank bill introduced, Britain regains the status of the Bank ofEngland and so on. Finally, the article analyze the part of our financial regulation, firstelaborates the history of the development of Chinese financial supervision, from aplanned economy era to the present development and the status of Chinese financialsupervision now. Because of Chinese financial market is implementing a separateoperation, the function of each financial institution is relatively simple. But Chinese financial market also needs mixed development and the trend of Chinese financialregulatory system is also very important. In this article, aiming at the status ofChinese financial supervision and regulation of financial problems, we can learn frommajor developed countries in the world that focus on financial regulatory reform onChinese financial regulatory reform proposed policy advice.