Key Subject of Insititute of Finance and Banking, CASS: Counter-cyclical policy research under macro-prudential regulation

    Presenter: Hu Bin

    Since the explosion and spread of global financial crisis triggered by the U.S. subprime mortgage crisis, national organizations, such as G20, International Monetary Fund and Financial Stability Forum, and governments and regulators in the United States, the European Union and Japan, and etc, have begun to take action to reviewing and reforming their financial regulatory system and putting forward a series of improving measures when taking emergency measures to dealing with the crisis and maintaining financial stability. We can see from this financial crisis that, under the complex financial system, traditional micro-prudential regulation has difficulty undertaking the task of maintaining financial stability, which has caused pro-cyclicality as well, making itself a factor influencing financial stability. Therefore, strengthening the macro-prudential regulation and combining it with micro prudential regulation organically and forming a complete set of macro-prudential regulation framework will become the main growing trend of the post-crisis financial regulatory reform of each country.