Study on the methods of financial supervision

In this paper, I am delighted to address the topic of methods to regulating financial institutions. Given the current level of global financial upset, which can be traced in part to poor banking regulation in many countries, I think that no subject is more timely. In this paper, I focus on two topics: First, what are the respective roles of market regulation and government regulation? Second, what are the different ways of organizing the government supervision and regulation of institutions that include a bank? In this paper I draw two conclusions, one is regulation is important for market and authorities, the other is the central bank plays an indispensible role for modern financial system.