BEIJING, Jan. 5 (Xinhua) -- Despite the progress made in 2009, the international community, particularly the United States and the European Union (EU), need more endeavors to boost financial regulatory reform and help revamp the world financial system, analysts say.    

    WASHINGTON: WRESTLING BETWEEN DIFFERENT PARTIES

    The U.S. House of Representatives approved a financial regulatory reform plan on Dec. 11, which would turn the Federal Reserve into a "super regulator" and set up a new consumer financial protection agency.

    This was another big stride forward on the road of financial regulatory reform after U.S. President Barack Obama announced a white paper on financial regulatory reform on June 17.

    The plan also needs a nod from the Senate before being brought to Obama for signing.

    However, analysts suspect that the plan tries to avoid hurting interest groups, especially those on Wall Street, since the U.S. government has all along kept an intimate relationship with Wall Street.

    David Wyss, chief economist of Standard & Poor's, said political elements will not only delay the strengthening of U.S. financial supervision, but may worsen the current situation.

    Although Obama has for many times reproached Wall Street for giving the financial practitioners too high salaries, big bonuses are still being handed out.

    The New York Times, in a commentary, said Wall Street still greatly influences Washington two years into the financial crisis.     

    Some U.S. scholars go further by saying the U.S. government has been "hijacked" by Wall Street.

    Many worry that it takes much more time before the plan is eventually presented to Obama for signing, and it would have been modified from head to toe.     

    BRUSSELS: DISPUTE BETWEEN BRITAIN AND FRANCE

    The EU unveiled its financial regulatory reform package on June19, 2009. Three months later, the executive European Commission proposed a joint European Systemic Risk Board be established to monitor the stability of the financial system as a whole.

    In addition, three European supervisory authorities for banks, insurance and securities markets would be created with a view to unifying supervisory practices among member states and to ensuring efficient handling of a financial emergency.

    However, France and Britain -- two major EU members -- have been quarreling fiercely with each other on regulation modes.

    France insists financial markets in EU member countries should adopt the same regulatory standards. Otherwise there would be brain drain from tightly supervised markets to elsewhere.

    In contrast, Britain says excessive regulation should be avoided and that London, as the only European financial center to rival New York, should be favored regarding financial regulation.     

    WORLDWIDE: COOPERATION BETWEEN DIFFERENT COUNTRIES

    The world economy is recovering but still fragile, said Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF). Therefore all economies should keep alert to various risks and strengthen supervision, especially in financial fields.

    Ding Zhijie, dean of the School of Banking and Finance of the University of International Business and Economics, said the IMF and the Financial Stability Board should improve their division of labor and cooperation, and spur different countries to adopt proper financial regulatory measures.

    Emerging economies, although suffering less shocks in the global financial crisis, have saved considerable asset bubbles and are facing rather high financial risks as they have attracted a huge amount of international funds in the crisis. Therefore, they also need more regulation.

    Analysts say financial regulatory sectors in the world should adopt fresh thoughts and ideas in 2010 to further push forward financial supervisory reform.

Special Report:  Global Financial Crisis