| Peer-Reviewed

Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement

Received: 19 May 2017     Published: 20 May 2017
Views:       Downloads:
Abstract

After the financial crisis in 2007, the high risk brought by financial innovation has aroused widespread concern and thinking again. The measures to curb financial innovation in various countries have become increasingly severe. However, under the background of the supply-side reform proposed by the Chinese government, the reform of the financial capital elements of the supply root is imperative. Therefore, how to curb the risk of innovation in financial institutions effectively, while encouraging innovation in favor of financial supply side of the reform of compliance, become an important issue to be solved. Based on the limited rationality, the long - term dynamic game equilibrium between financial institutions and regulators and its impact on financial system and financial market is analyzed by constructing asymmetric evolutionary dynamic game model. Then, analyzing the relevant factors of long-term equilibrium, and puts forward the regulatory measures which are conducive to encouraging the reform of compliance and the reform of financial supply-side.

Published in Journal of Finance and Accounting (Volume 5, Issue 3)
DOI 10.11648/j.jfa.20170503.13
Page(s) 102-106
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Financial Innovation, Financial Regulation, Evolutionary Game

References
[1] Liqin Chen. Technology of Financial Regulatory Framework in the United States under the Background of Financial Crisis [J]. Journal of the Tianjin Municipal Party College, 2015(8): 53—60.
[2] Gualandri E. and A. V. Landi. Financial Crisis and New Dimensions of Liquidity Risk: Rethinking of Prudential Regulation and Supervision [J]. Journal of Money, Investment and Banking, 2009 (8): 25-42.
[3] Wu Tong and Rongzhen Xu. Financial crisis, financial innovation and supervision of the evolution of the game analysis [J]. Statistics and decision-making, 2010 (8).
[4] Xiaolei Cui and Longbing Xu. Game Analysis of Financial Innovation and Financial Supervision under Bounded Rationality [J]. Shanghai Finance, 2011 (1).
[5] Cheng Li, Guoxue Ma and Jia Li. Based on evolutionary game theory on China's financial regulatory coordination mechanism [J] Financial Research, 2009 (5).
[6] Cheng Li, Wei Zhang and Hua Kuang. The nonuniformity of financial supervision and the system risk of the inter-agency game [J]. Financial Research, 2011 (2).
[7] Chun He. Evolutionary game: a dialectical review of the relationship between financial innovation and financial regulation [J]. Theoretical Discussion, 2012 (11).
[8] Jingxian Wang and Min Yang. Financial regulation and financial innovation of the game empirical [J]. China market, 2010 (48).
[9] Zongtai Li and Zhongwei He. Based on evolutionary game theory of food quality and safety supervision analysis [J]. Modern Economic Information, 2012, 28 (30).
[10] Wenwen Yan. Financial management and financial innovation evolutionary game analysis [J]. Southern Finance. 2012 (8): 23-26.
[11] Yanhua Li. Based on evolutionary game theory of financial innovation and financial regulation dynamic game analysis [J]. Social Science Forum, 2014 (12).
[12] Yanghui Ou. Based on evolutionary game theory of China's financial innovation and financial regulatory issues [J]. Journal of Economic Research, 2014 (17).
[13] Robert C. Merton. Financial Innovation and the Management and Regulation of Financial Institutions [J]. Journal of Banking & Finance, 1995 (11).
[14] Jiantao Ren. Study on Financial Innovation of China's Commercial Banks [J]. Selected Works of Small Writers, 2016 (3): 49.
Cite This Article
  • APA Style

    Huang Ran, Fan Qun. (2017). Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement. Journal of Finance and Accounting, 5(3), 102-106. https://doi.org/10.11648/j.jfa.20170503.13

    Copy | Download

    ACS Style

    Huang Ran; Fan Qun. Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement. J. Finance Account. 2017, 5(3), 102-106. doi: 10.11648/j.jfa.20170503.13

    Copy | Download

    AMA Style

    Huang Ran, Fan Qun. Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement. J Finance Account. 2017;5(3):102-106. doi: 10.11648/j.jfa.20170503.13

    Copy | Download

  • @article{10.11648/j.jfa.20170503.13,
      author = {Huang Ran and Fan Qun},
      title = {Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement},
      journal = {Journal of Finance and Accounting},
      volume = {5},
      number = {3},
      pages = {102-106},
      doi = {10.11648/j.jfa.20170503.13},
      url = {https://doi.org/10.11648/j.jfa.20170503.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20170503.13},
      abstract = {After the financial crisis in 2007, the high risk brought by financial innovation has aroused widespread concern and thinking again. The measures to curb financial innovation in various countries have become increasingly severe. However, under the background of the supply-side reform proposed by the Chinese government, the reform of the financial capital elements of the supply root is imperative. Therefore, how to curb the risk of innovation in financial institutions effectively, while encouraging innovation in favor of financial supply side of the reform of compliance, become an important issue to be solved. Based on the limited rationality, the long - term dynamic game equilibrium between financial institutions and regulators and its impact on financial system and financial market is analyzed by constructing asymmetric evolutionary dynamic game model. Then, analyzing the relevant factors of long-term equilibrium, and puts forward the regulatory measures which are conducive to encouraging the reform of compliance and the reform of financial supply-side.},
     year = {2017}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Asymmetric Evolutionary Game between Financial Innovation and Financial Regulation ---- Punishment or Encouragement
    AU  - Huang Ran
    AU  - Fan Qun
    Y1  - 2017/05/20
    PY  - 2017
    N1  - https://doi.org/10.11648/j.jfa.20170503.13
    DO  - 10.11648/j.jfa.20170503.13
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
    SP  - 102
    EP  - 106
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20170503.13
    AB  - After the financial crisis in 2007, the high risk brought by financial innovation has aroused widespread concern and thinking again. The measures to curb financial innovation in various countries have become increasingly severe. However, under the background of the supply-side reform proposed by the Chinese government, the reform of the financial capital elements of the supply root is imperative. Therefore, how to curb the risk of innovation in financial institutions effectively, while encouraging innovation in favor of financial supply side of the reform of compliance, become an important issue to be solved. Based on the limited rationality, the long - term dynamic game equilibrium between financial institutions and regulators and its impact on financial system and financial market is analyzed by constructing asymmetric evolutionary dynamic game model. Then, analyzing the relevant factors of long-term equilibrium, and puts forward the regulatory measures which are conducive to encouraging the reform of compliance and the reform of financial supply-side.
    VL  - 5
    IS  - 3
    ER  - 

    Copy | Download

Author Information
  • Economics and Business Management Department, Hua Zhong Normal University, Wuhan, China

  • Economics and Business Management Department, Hua Zhong Normal University, Wuhan, China

  • Sections