The new research by Honggeng Zhou, associate professor of decision sciences, and Wenjuan Xie, assistant professor of finance, both at UNH, is presented in the working paper “Challenges for the Unified Financial Supervision in the Post-crisis Era: Singaporean Experience and Chinese Practice.” The paper is co-authored by Jing Geng of Harvard University and GuiBin Zhang of Monash Asia Institute.
“The United States is a good example of a country that encountered significant financial repercussions because of the lack of integrated financial supervision. Because China has not allowed free exchange of its currency in the financial market, China was not hurt as much as the United States in the financial crisis. However, as China allows more flexibility in its currency market and its economy is more globalized, China could face serious financial consequences if China does not move toward a more unified supervisory agency model,” Zhou says.
A unified supervisory agency oversees a number of financial entities that have increasingly complex relationships, such as banks, investment banks, finance companies, asset managers, securities brokers, and insurance companies. An advantage of unified financial supervisory agency is that it monitors financial products as well as financial institutions.
The discussion of unified financial supervisory agencies has been a hot topic worldwide following the financial crisis. In the United States, the most recent financial reform bill signed by President Barack Obama in July 2010 includes the creation of the Financial Stability Oversight Council, which is a move toward integrated financial supervision.
Worldwide countries such as Australia, Canada, Denmark, Japan, Korea, Norway, Singapore, Sweden, and the UK formed an informal club of “integrated supervisors” right after the 1997 financial crisis. These countries have reformed their supervisory functions in response to the emerging international trends of blurring of boundaries between financial industries of banking, insurance and capital markets, as well as financial conglomeration.
The world’s second-largest and fastest-growing economy, China currently has separate entities that supervise and regulate different parts of its enormous financial system. The researchers recommend China take a gradual approach to creating an integrated mega-functioning supervision body.
“The world financial markets are experiencing a special revolution. The emergence of new products -- new risk management techniques and cross-border financing -- has changed the traditional financial structures. The phenomenon of financial conglomerates, cross industry financial products and its impact on traditional supervision model have not only attracted theoretical researchers’ attention but also financial regulators into considering how they can supervise financial institutions, products and markets better. How to view the phenomenon of universal banking and financial holding business -- how to evaluate its influence and make reasonable response -- are questions that need study using multi-dimensional and comprehensive analysis based on modem economic theories,” Xie says.
The UNH Whittemore School of Business and Economics offers a full complement of high-quality programs in business, economics, accounting, finance, information systems management, marketing, and hospitality management. Programs are offered at the undergraduate, graduate, and executive development levels. The school is accredited by the Association to Advance Collegiate Schools of Business, the premier accrediting agency for business schools worldwide.
The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea, and space-grant university, UNH is the state's flagship public institution, enrolling 12,200 undergraduate and 2,300 graduate students.Honggeng Zhou
Honggeng Zhou | Newswise Science News
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Scientists develop first tool to use machine learning methods to compute flow around interactively designable 3D objects. Tool will be presented at this year’s prestigious SIGGRAPH conference.
When engineers or designers want to test the aerodynamic properties of the newly designed shape of a car, airplane, or other object, they would normally model...
Researchers from TU Graz and their industry partners have unveiled a world first: the prototype of a robot-controlled, high-speed combined charging system (CCS) for electric vehicles that enables series charging of cars in various parking positions.
Global demand for electric vehicles is forecast to rise sharply: by 2025, the number of new vehicle registrations is expected to reach 25 million per year....
Proteins must be folded correctly to fulfill their molecular functions in cells. Molecular assistants called chaperones help proteins exploit their inbuilt folding potential and reach the correct three-dimensional structure. Researchers at the Max Planck Institute of Biochemistry (MPIB) have demonstrated that actin, the most abundant protein in higher developed cells, does not have the inbuilt potential to fold and instead requires special assistance to fold into its active state. The chaperone TRiC uses a previously undescribed mechanism to perform actin folding. The study was recently published in the journal Cell.
Actin is the most abundant protein in highly developed cells and has diverse functions in processes like cell stabilization, cell division and muscle...
Scientists have discovered that the electrical resistance of a copper-oxide compound depends on the magnetic field in a very unusual way -- a finding that could help direct the search for materials that can perfectly conduct electricity at room temperatur
What happens when really powerful magnets--capable of producing magnetic fields nearly two million times stronger than Earth's--are applied to materials that...
The quality of materials often depends on the manufacturing process. In casting and welding, for example, the rate at which melts solidify and the resulting microstructure of the alloy is important. With metallic foams as well, it depends on exactly how the foaming process takes place. To understand these processes fully requires fast sensing capability. The fastest 3D tomographic images to date have now been achieved at the BESSY II X-ray source operated by the Helmholtz-Zentrum Berlin.
Dr. Francisco Garcia-Moreno and his team have designed a turntable that rotates ultra-stably about its axis at a constant rotational speed. This really depends...
08.08.2018 | Event News
27.07.2018 | Event News
25.07.2018 | Event News
14.08.2018 | Information Technology
14.08.2018 | Life Sciences
14.08.2018 | Life Sciences