金融开放条件下货币政策与金融监管的分工与协作

金融开放条件下货币政策与金融监管的分工与协作 The division of labor and cooperation between monetary policy and financial supervision under the condition of financial opening 2002-4-4 0:0 "financial research" [Qian Xiaoan] [big print] [I want error correction] Abstract: This article from the analysis of the changes of structure and function of financial intermediaries under financial openness of financial openness to explore the influence on the financial operation mechanism, to demonstrate the effectiveness of financial openness will weaken the monetary policy and financial supervision, proposed to adapt to the requirements of financial openness, re positioning of monetary policy and financial supervision objectives and means and the function of professional division of labor, the implementation of monetary policy and financial supervision, the establishment of a unified financial supervision system, improve the coordination mechanism between monetary policy and financial supervision, to ensure the healthy development of the financial industry. Organization and function of the role of monetary policy and financial supervision, at different times in different countries and the same country, because of its economic, social and political conditions vary, constant, constant monetary authority does not exist in the world (or central bank) and the financial supervision authority system. This paper focuses on the process of financial opening, financial intermediaries will have structural changes and functional changes, and the efficiency of monetary policy and financial supervision of the original has been reduced, established the relationship between them is broken, the need to reform and improve the monetary policy and financial supervision system. I. Changes in the financial operation mechanism under the condition of financial openness Financial opening is not only a policy, but also a state. As the financial system is in a particular state of development, financial openness refers to a country (or area, the same below) of the financial institutions, financial markets and foreign financial institutions, international financial market integration. In this sense, the financial openness is universal. Because of the trend of financial globalization and integration, almost all countries are constantly enhancing international cooperation in the financial field. Nevertheless, financial openness in developing countries (or emerging markets) is of special significance, because the country's financial system is established in the closed economy, the financial system is affected by the stage of economic development and the level of the corresponding constraints, while financial liberalization is to adjust the closed financial system so, with the integration of international financial system. The financial opening will have a profound change and influence on the financial system of developing countries, among which the most important thing is to change the financial operating mechanism. The basis of this change lies in structural changes and functional changes in the subject of financial operation. On the one hand, foreign financial institutions with financial intermediary structural changes; on the other hand, the operation of domestic financial institutions will change correspondingly, its participation in the international financial market scale and frequency increased significantly, resulting in domestic financial intermediation function change. The changes of the financial operation mechanism are reflected in the mixture of financial institutions at home and abroad, which makes the financing function and price formation mechanism of the financial system have new features. Compared with closed finance, financial intermediation includes both domestic financial institutions and foreign financial institutions, while the financial market has both domestic financial markets, There are also international financial markets, the financial regulation and financial supervision bodies, both monetary authorities and regulatory authorities, as well as international financial organizations (including foreign monetary authorities and regulatory authorities). This has led to changes in the pattern and mechanism of financial operations (see Figure 1). The opening of financial regulation subject, financial operation supervision, financial intermediary and financial market diversification, especially the increase of market subject and regulation of the new subject, the external dependence is greatly enhanced, the original financial operation mechanism by the impact of specific performance in the following aspects: Firstly, the controllability of monetary regulation and the object (object) of financial supervision have been strengthened. The process of financial opening up, foreign financial institutions of international business into large, coupled with domestic financial institutions and overseas financial institutions doing business more closely, so, whether monetary or financial regulation and supervision, will encounter greater external constraints. As the host country to tighten monetary policy or regulation, a large number of financial activities may be transferred to overseas, resulting in changes in the supply of domestic funds by financial intermediaries offset by the demand for international financial market. Second, the efficiency of monetary policy and financial regulation tends to weaken. Under the opening of finance, the change of foreign financial intermediaries and the international financial market will have a significant impact on the domestic financial operation, may even have a contagion effect and spread effect, resulting in loss of control of domestic financial operation. In the process of financial operation, the operation of offshore financial institutions will affect the domestic financial operation, while the monetary authorities and regulatory authorities can not effectively regulate and supervise them. As a result, non regulated foreign financial intermediaries and international financial markets make financial regulation face new difficulties. Third, under the condition of financial opening, the financial intermediation business is increasingly diversified and internationalized, and the supervision of overseas financial intermediaries needs to seek close international coordination, so as to protect the stable operation of the domestic financial industry. Here called international coordination, including not only the coordination of international organization and the International Monetary Fund, the world bank, the bank for International Settlements, the World Trade Organization and so on, and this includes coordination of government, and foreign currency financial regulatory authorities. In other words, there is not only multilateral coordination in the relevant international financial organizations, but also bilateral cooperation and coordination with the relevant monetary authorities and regulatory authorities. In short, the structural change and functional change of financial intermediaries under the condition of financial opening, will lead to the integration of domestic and international financial markets, increase the external constraints of financial operation, transfer and spread of financial risk, the monetary policy and financial supervision is facing new challenges, increase domestic and international financial policy coordination difficulty. Two, financial openness will weaken the effectiveness of the existing monetary control The influence of financial openness on monetary policy is far-reaching, mainly because the object of monetary policy regulation has changed. The object of monetary policy is the financial intermediary, financial openness makes financial intermediary structural changes and functional changes: on the one hand, the structural changes in the financial intermediation, including not only the domestic financial institutions, the domestic financial institutions can carry out cross-border business, And including foreign financial institutions; on the other hand, functional changes in financial intermediation channels of financing has increased, especially in the domestic financial institutions and foreign financial institutions can strengthen business ties, participate in international financial markets, increased its financing capacity, thereby increasing the indirect monetary policy regulation and control ability of the monetary authorities it is thus weakened. Under the condition of financial openness, the effectiveness of monetary policy regulation tends to weaken, which is embodied in the following aspects: First, the adjustment of monetary policy tools has declined. Under the opening of finance, the number of transactions with the central bank will gradually decrease, financial institutions early almost all of the requirements and be able to obtain credit support from the central bank, then more financial institutions through the financial interbank market financed. The indirect effect of monetary policy is further enhanced when the central bank uses the open market operation and the counterparties to finance more. However, conduct financial transactions with the central bank's financial institutions in the United States, fewer dealers (open market operations of the Federal Reserve Bank of New York has been trading opponent) from the end of 1980s 45 dropped to mid 90s 37. There were only 29 in 2000 and further down to 25 in early twenty-first Century (Qian Xiaoan, 2001e). From a global perspective, the use of monetary policy tools to show the market trend, the central bank and financial institutions, the traditional "one to one" financing activities gradually reduced, it is replaced by the central bank through participation in financial market transactions, indirectly affect the management behavior of financial institutions. Two, the stability of the intermediary target tends to weaken. Under the condition of financial openness, the structural changes of financial intermediaries make the financial operation mechanism change accordingly, thus changing the correlation between macroeconomic indicators. Under the new circumstances, the central bank monetary policy intermediary target is no longer effective measure, need to adjust the intermediate target (such as adjusting the money supply, or other variable diameter) as the intermediate target of monetary policy (money Andy, 2000b). In 1970s, American academics have criticized the Federal Reserve Board at that time in order to offset the impact of the business cycle and the money supply as the intermediate target, resulting in economic instability, this is because of the money supply as the intermediate target to control the economic activities need to wait a long time to work at the same time, the mechanism by which monetary effect certainly it is difficult to economic activities (Cargill, Garcia, 1989, page sixty-second). The empirical research on the time lag of China's monetary policy further shows that the time lag of the impact of monetary policy on the real economy is about 1 and a half years (Qian Xiaoan, 2000a). Three, the ultimate goal of monetary policy needs to be further defined. Under the opening of finance, monetary authorities can not control foreign financial activities directly, especially the scale of foreign capital flows and flows, the uncontrollability of international payments increased (Qian Xiaoan, Li Zili, 2001), which affects the domestic economic activity. Thus, if the monetary authorities still aim at controlling the exchange rate, there will be a greater social cost. Under the condition of financial opening, The adjustment of foreign economic and financial relations needs to be realized through exchange rate policy rather than monetary policy. In the choice of exchange rate system, we should not adopt the pegged exchange rate system or laissez faire free exchange rate system, but should adopt a managed floating exchange rate system (Qian Xiao an, 2001d). In addition, in the medium and long term, monetary policy has less influence on economic growth and full employment, and even has the tendency of currency neutrality. Experience shows that a country economic policy, the country will pay more attention to inflation, because of international trade and international capital flows and inflation are closely related, and the exchange rate has an important effect on inflation (Hu Daiguang, 1997, page 254th). Therefore, the ultimate goal of monetary policy should be to maintain the stability of the value of the currency and to control inflation. The four is that the exogenous monetary policy has increased, due to the convergence of domestic and foreign financial market and a unified, external factors that influence the formulation and implementation of monetary policy to increase, therefore, the formulation and implementation of monetary policy, not only to see the changes in the domestic economic and financial situation, and the policy orientation of the international financial market and the trend of foreign currency the authorities. The financial opening to make monetary policy more prone to "shooting the head" reaction, therefore, in the planning process of monetary policy, to fully consider the impact of exogenous variables, through the model establishment, simulation, prediction, grasp the monetary policy under financial openness of law, establish a reasonable monetary policy framework. Five, the function of monetary policy changes. Under the condition of financial opening, the structural changes of financial intermediaries will gradually weaken the original function of monetary policy to protect the stability of a single financial institution. The main reason is that the business of financial institutions with extroversion and comprehensiveness, the monetary authorities responsible for the risk management of individual financial institutions of the potential costs and risks, and even can not only through the use of monetary policy tools to ensure the sound operation of financial institutions. Three, financial openness will lead to changes in the financial regulatory system The financial opening will have a great influence on the financial supervision, which will make great changes in the subject, content, mode of supervision and system of supervision, which can be embodied in the following aspects: First, from the subject of supervision, the financial opening will increase the new regulatory object, and will change the original supervision of the object of business behavior. Specifically, the implementation of financial opening up, foreign financial institutions from profit maximization, business internationalization management strategy, added to the host country's financial activities, resulting in the number of host country's foreign investment financial institutions has increased a lot, the structure of financial institutions also have corresponding change. At the same time, the entry of foreign financial institutions will lead domestic financial institutions to imitate, introduce new financial instruments and develop new financial services, and their operation behavior will also change. Second, from the regulatory content, the financial opening will expand the existing financial market expansion, financial innovation continues to advance. However, the traditional financial supervision is mainly about the issuing license, examination and approval business, on-site audit, compliance inspection and so on. The emphasis is on approval and on-site inspections, The supervision methods adopted are mostly planned and administrative, and the financial supervision method is no longer effective. The main reason is: on the one hand, foreign financial institutions management according to the modern corporate governance structure, between risk and return, can better balance, therefore, the financial supervision of their smaller binding; on the other hand, foreign financial institutions in the context of the international financial market, excessive regulation and easily seek international financial market as instead, transfer and spillover effects. For the financial regulatory authorities, or from the approval system to record system changes, allowing financial institutions in accordance with the business development and risk control of financial innovation; or inhibition of innovation power of financial institutions, the financial activities to transfer abroad, has a substitution effect and spillover effect. Third, from the perspective of supervision, under closed financial conditions, financial supervision is to prevent financial risks through direct supervision, and ensure the safe operation of the financial institutions. This planned regulation method can be easily implemented, but its efficiency is low, this is because: on the one hand, the approval of the regulatory approach is not conducive to the development of business of financial institutions, financial institutions because each start a new business must be approved by the financial regulatory authorities. However, this license management method is lack of dynamic tracking, even if some financial institutions operating condition and situation had adverse changes in the financial regulatory authorities will not be reflected in the examination and approval of the business; on the other hand, over reliance on site audit and inspection, easily caused by external supervision for financial institutions internal control problems, is not conducive to financial institutions to establish corporate governance mechanism. Fourth, from the regulatory system, with the increasing intersection of different types of financial institutions, as well as the emergence of financial (Banking) holding companies, the trend of comprehensive operation and mixed operation of financial industry will be accelerated. Under the new financial environment, if a separate supervision system is still adopted, the introduction of a new business often needs to be coordinated by a number of departments so as to result in higher policy coordination costs. At the same time, the emergence of cross service may lead to duplication of supervision, or there may be no supervision. Therefore, in order to improve the efficiency of financial supervision and enhance the competitiveness of the financial industry, it is necessary to establish a unified financial regulatory system (Qian Xiaoan, 2001a; 2001c). Fifth, financial openness has made international cooperation in financial supervision indispensable. Because of the financial characteristics under open financial intermediation with internationalization, specialization, especially the international financial institutions (such as corporation) carry out global business strategy, so that a single national implementation of financial regulation can not effectively control the business risk. Some financial institutions with high leverage investment function, such as various funds, have greater potential risks. Therefore, it is urgent for global economic organizations to supervise their information transparency and risk control. The trend of financial globalization, the urgent need to strengthen the financial regulatory authorities and international financial organizations, system monitoring and control risk to develop a unified, improve the relevant national financial supervision efficiency, guarantee the stable operation of the global financial system. In short, Under the condition of financial opening financial supervision is comprehensive, careful and effective, independent, prospective, historic characteristics (Qian Xiaoan, 2001c), which requires the financial regulatory authorities to strengthen financial supervision and coordination, supervision and supervision to prevent overlap or omission vacancy phenomenon. In order to meet the needs of the development of mixed operation, the professionalization and function of financial supervision should be implemented, and the regulatory policies of different types of financial institutions should be coordinated. Starting from the point of financial risk prevention, formulate and implement to ensure stable operation of financial institutions policy measures to international practices and rules as the basis, the implementation of prudential supervision, pay attention to the dynamic management of market access and exit, actively with market rules, with the principle of prudent supervision as a guide, and the means of information disclosure, to perfect internal control as the basis, to standardize the market rules of discipline, to urge financial institutions to establish a sound internal control mechanism, improve the transparency of information, establish the risk early warning system, to achieve high efficiency and low cost, the financial supervision, to ensure the stable operation of the financial system. Four, the division of labor and cooperation between monetary policy and financial regulation Financial opening will not only weaken the effectiveness of monetary policy and financial supervision, but also become a motive force for specialized division of labor and coordination between the two. (1) the professionalism of monetary policy and financial regulation; Under the opening of finance, monetary policy is difficult to directly control the risk of individual financial institutions, therefore, should not use monetary policy to avoid risk of individual financial institutions, professional monetary policy reflected in the forecast and control the macro economy. In fact, the central bank is no longer concerned about the risk situation of individual financial institutions, but more concerned about the systemic risks of financial institutions. Under the opening of finance, the object of monetary policy is an open economy, foreign demand has become an important variable, which includes economy, trade, and capital flows, the two variables of the great variability of macro-control, the professional, more complex. In the use of monetary policy tools, the central bank uses more market-based tools (such as open market operations), lending facilities (or re lending) and other planning tools are rarely used. The trend of integration, financial liberalization will accelerate financial business diversification, this means that the original institutional regulation is no longer effective, in other words, the regulatory authorities should implement the "institutional supervision strategy of man", and should implement functional supervision according to the risk of financial business. In fact, the comprehensive management of financial institutions has a unified financial supervision system requirements (money Andy, 2001c). From 73 countries of the global financial regulatory system, there are at least 39 different countries adopt unified supervision form, unified supervision of the country accounted for 53.4% (see Table 1), which reflects the needs of the financial supervision system must be suitable for the development of financial business. (two) the separation of functions between monetary policy and financial supervision; Under the condition of financial openness, the specialty of monetary policy and financial supervision has been enhanced, and the functional differences between them have expanded constantly, thus resulting in the separation of functions between them. From the point of view of function division, Monetary authorities should primarily monitor and achieve macroeconomic development goals, control inflation through monetary policy operations, and maintain sustainable economic development. Because of the macro and directive nature of monetary policy, monetary authorities focus mainly on systemic risks of financial institutions, not on the operational risks of individual financial institutions. Correspondingly, the financial supervision authorities are mainly responsible for the sound operation of financial institutions. The goal of supervision is not the profitability of financial institutions, but their risk. That is, the financial supervision authorities do not aim at the price level of the financial market (such as the stock market price index, bond yields, etc.) and aim at preventing the risks of the financial institutions. Due to the further expansion of the differences of monetary policy and financial supervision function under the condition of financial openness, a reasonable division of labor is needed between them. When summing up the experience of the countries, the staff of the International Monetary Fund proposed that the central bank and financial supervision should be divided (Abrams, and, Taylor, 2000, p.21). In fact, if monetary policy and financial regulation are combined, there may be a series of questions: First, the public believes that different kinds of financial assets will be protected by the same central bank, resulting in moral hazard. If monetary policy and banking supervision unified, banks can have the monetary authorities' lender of last resort support, while the securities and insurance business risk without a "lender of last resort support, therefore, will cause the asymmetry of the financial sector financial support, the banking industry have moral hazard, and improve the level of inflation expectations. Secondly, the monetary authorities in the use of monetary policy "lender of last resort" function of foreign financial institutions will face problems when the "dilemma": if the domestic financial institutions and foreign financial institutions to protect the distinction, but will join WTO on financial services of the violation of the "non discrimination principle", if the foreign funded financial institutions use the "lender of last resort" support, will make the domestic taxpayer money to support foreign financial institutions. Again, if the central bank failures in financial regulation, due to the joint effect of confidence and sense of responsibility, reputation and reliability of monetary policy will suffer, and lead the public to lose confidence in the monetary authorities, so that the role of monetary policy tends to weaken, and prone to financial shocks. Finally, when the central bank is in charge of financial regulation, it will be possible to implement a relaxed monetary policy by focusing on the soundness of financial enterprises, thus creating higher inflation. The central bank's privilege of using "lender of last resort" (or re lending) to protect commercial banks from failing will lead to a rigid increase in low-quality credit assets. Practice shows that the central bank is also responsible for banking supervision of the state, than the central bank is not responsible for the supervision of banks in countries with higher inflation, higher rate of more than 50%, which is in 24 countries from 1960 to 1996 as the sample data for relevant research results (Noia, and Di Giorgio. 1999). In addition, the greater the central bank's function, the greater its political pressure or external control, it can be seen that financial supervision should be separated from the central bank functions (Briault, 1999), P.27). (three) coordination between monetary policy and financial regulation; Under the financial opening condition, although the monetary policy and the financial supervision need to carry on the function division of labor, but their relations are still very close, specifically displays in: first, the policy goal consistency. Monetary policy and financial supervision are both important financial policies. Both should follow the basic goal of protecting financial stability and promoting economic development; two, coordination of policies and measures. The effective implementation of monetary policy need to sound financial institutions and financial market environment as the condition, and prudent financial supervision and with certain macroeconomic policy as the background, especially to the appropriate monetary policy as the background; the three is the transmission of information sharing. The monetary authorities and regulatory authorities face the common financial institutions and financial markets, in the formulation and implementation of monetary policy, to guide financial institutions management behavior, therefore, to ensure the business of financial institutions is the basis of robust monetary policy, monetary policy implementation is provided. For financial supervision, to maintain the sound operation of financial institutions and related monetary policy environment, the tightness of monetary policy trend will have a significant impact on the financial asset price risk, and the soundness of financial institutions influence. In short, in order to meet the demand of financial opening, in the premise of implementing monetary authorities and regulatory authorities and agencies into the division of functions, strengthen the cooperation between the two, and jointly safeguard the steady development of the financial industry, which should pay attention to the following questions: First, to strengthen the sharing of information between the two. The financial statistical information timely, accurate and comprehensive understanding of the financial operation is the first hand materials, to establish a unified and independent financial information center as soon as possible, form a centralized, unified and efficient financial information sources, do statistics can prevent repeated calculation or statistical omissions, which is authoritative, scientific, independent of. To avoid the banking sector, the securities industry, the insurance industry may be divided into statistical problems, to prevent financial institutions from the angle of financial regulation, arbitrary transfer of financial assets, illegal operations. Second, the establishment of financial stability mechanism. The relationship between the coordination between monetary policy and financial supervision and financial supervision departments, to ensure the smooth operation of the financial policy basis, therefore, it is necessary to establish financial stability mechanism between monetary policy and financial regulation, the relationship between risk and the risk of the financial system of financial institutions and coordination. In the design of the system, in between the monetary authorities and financial regulatory authorities to improve the senior management personnel are involved in the system, the establishment of monetary policy and Financial Supervision joint meeting system, regular consultations on major issues of financial operation. In the concrete operation, we may consider convening a joint meeting every quarter to inform the policy implementation and orientation of monetary policy and financial supervision, and to strengthen the coordination between monetary policy and financial supervision. The joint conference system has two options: first, it can be located in the Monetary Authority (central bank); and two, a more authoritative decision-making body that can be located on the monetary authority and the financial regulatory authority. The advantage of the first approach is that it reduces the cost of institutional operations, The disadvantage is that its authority is poor and its independence is not enough. The advantage of the second schemes is that it is authoritative and independent, but it may increase the operating cost. Third, to enhance the transparency of monetary policy and financial supervision. As the main body of financial operation is financial institutions, guiding financial institutions and public expectations is an effective measure to improve financial operation. To improve the transparency and guide public expectations for the regular operation of the public means of monetary policy and financial supervision, to the public that the monetary authorities and financial regulatory authorities of the current financial operation attitudes and perceptions, and actively guide the management behavior of financial institutions, the regulation of financial intermediaries through market means, to prevent or reduce the financial market of financial policy expectations the vibration generated, keep stable operation of the financial market, and promote the healthy development of economy and Finance