Is Australia's "Twin Peaks" system of financial regulation a model for China? (Part 2)

Abstract

As China's financial system has become more complex and integrated, calls have intensified for structural reform. In particular, many commentators have called for China to move towards the twin peaks model of financial regulation along the lines of the experience in Australia. This article explores the insights that China might glean from Australia and other twin peaks jurisdictions and suggests certain choices that China might make if it decided to adopt such model. The first part of the article, which appeared in the previous issue, examined the main models of financial regulation, particularly the twin peaks, and analysed the various challenges and reform proposals which China's regulator..