Research On Financial Regulatory Reform In The EU Area

In2008,the financial crisis triggered by the U.S. subprime mortgage crisishit the global economy, making each national and regional economy suffervarying degrees of losses. As one of the most successful integrationalorganizations, the European Union also not survived. Many scholars believethat lack of financial regulation is one of the key reasons of the financial crisis.The United States, Britain and other developed countries try to reform theircountries’s financial supervision systems. The EU has also been in reflectionof loopholes of financial regulation, and started the reform of the financialregulatory system in2009. Compared with other countries’ financial regulatoryreform, the financial regulatory reform of EU has part supranational nature.The contradiction between the segmentation of financial regulatory authorityand financial integration is the chief problem of the EU financial regulatoryreform.Although the EU has been promoting the integration of its financialsupervision, it encounters many difficulties. The financial crisis makes the EUdetermined to reform its financial regulatory and establish a pan-europeanfinancial regulatory system. While in this financial crisis China suffered smalllosses, this is mainly because the opening degree of China’s capital market islow. As the trend of the internationalisation of RMB and interest ratemarketization, the financial markets of China and the rest of the world will bemore and more closely linked. So strengthen financial regulation, and throughstrict financial regulation to reduce the financial risk is very necessary.Measures taken by the European Union in the financial reform, such asestablishing the supervision mechanism of macro-prudential regulation andmicro-prudential, improving the status of central Banks, protecting the rightsand interests of consumers, played a role in improving the financial supervisionof the EU.It is worth for our country to learn.In this paper, there are four main parts. In the first part,it introduces the EU financial regulatory before the financial crisis, inculding the background,content, the effectiveness and limitations of the reform. In the second part,itintroduces the EU financial regulatory after the financial crisis,inculding thebackground, content, the effectiveness and limitations of the reform. Theultimate goal of the EU financial regulatory reform is to change the situation ofthe segmentation of the EU’s financial regulation, establishing a pan-europeanfinancial regulatory system. So in the third part of this paper,it introduces howto establish the pan-european financial regulatory system and what problemswill face when establish this system. In the fourth part,it introduces what canour country learn from the European Union’s financial regulatory reform.