Banking regulation around the world （I）

The financial regulatory models of countries around the world can be broadly classified into three categories. The first category, the two-set pluralistic banking regulatory system: for example, the United States, Canada, etc. Two-tier means that both central and local governments have the power to regulate banks. For example, the US federal government and the individual state governments have the power to license and regulate banks. Multiple means that there are several regulators. For example, the US Federal Reserve Bank and the Treasury Department both have the power to regulate financial institutions. The second type of system is a pluralistic system of banking supervision: for example, France, Germany, etc. Financial supervision is centralised, but two or more institutions are responsible for financial supervision. The third type: a centralised single system of financial supervision. Examples include the UK, Singapore and China. The regulatory authority is concentrated in one central body, usually the central bank or the Monetary Authority.(Shenghu Wang,2013)
The UK and China, for example, are examples of a centralised single system of financial regulation. In the UK, the Bank of England has historically been responsible for the supervision and regulation of the banking sector, which has relied on the self-regulation of financial institutions and informal regulation in the form of "moral suasion" and "gentlemen's agreements". Prior to 1997, the UK adopted a multi-level supervisory model, with nine separate bodies overseeing the financial sector. In order to meet the challenges of financial globalisation and liberalisation, in May 1997, the Chancellor of the Exchequer announced a reform of the financial regulatory system, unifying the powers of nine financial regulators, including the Bank of England, into a new body, and establishing the Financial Services Authority (FSA) on 28 October 1997, with the first phase of the reform completed in In June of the following year, the financial regulatory function was transferred to the FSA. Its role is to regulate financial institutions in a range of sectors such as banking, insurance, securities and futures. The FSA is the most authoritative and strictest financial regulator in the world, approving customer funds and operating regulations on an annual basis. If the regulations are violated, penalties will definitely be imposed and even the licence will be revoked.(Fan Wu,2007)

                                       

Due to China's national conditions and the peculiarities of its social system, China has a relatively homogeneous financial regulatory system. That is, financial regulatory powers are concentrated in the central government, and the financial regulatory functions are performed by a financial authority designed by the central government, namely the establishment of the China Banking and Insurance Regulatory Commission (CBIRC) to regulate banks, securities and insurance institutions and markets. The CBIRC has the following tasks: to supervise and monitor financial institutions such as banks, insurance and securities in a unified manner in order to protect the legitimate rights and interests of financial consumers and the sound functioning of the financial market, in accordance with the requirements of Chinese law. (Fan Wu,2007)

The banking regulator in Singapore is the Monetary Authority, specifically the Financial Supervision Unit (comprising the Banking Department, the Securities and Futures Department, the Insurance Department and the Regulatory Securities Department) under the Monetary Authority, which is responsible for managing the supervision of financial institutions.(Fan Wu,2007)
              





References：

Giusti, Giuseppe Batbayar, Khulan（2020）“UK post-Brexit financial regulation: the status quo on equivalence”ERA Forum: Journal of the Academy of European Law. 21(2):199-207

Gao, Simin（2019）“Legal Pluralism and Isomorphism in Global Financial Regulation: The Case of OTC Derivative Counterparty Risk Regulation in China”51 Geo. Wash. Int'l L. Rev. 145 (2019) / George Washington International Law Review, Vol. 51, Issue 1 (2019), pp. 145-200

Bennett, Michael S(1993)"Securities Regulation in Singapore: The City-State as an International Financial Center"Pacific Basin Law Journal, vol 12, iss 1

吴凡：开放经济条件下金融业经营和监管模式的比较研究[D];合肥工业大学；2007（in Chinese）

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