The game theory analysis and suggestions on post-crisis China-ASEAN Cooperation in Banking Supervision

Although China-ASEAN Cooperation in Banking Supervision has made many achievements, there are still some problems. Through establishing a game model of inter-countries cooperation in banking supervision and analyzing the strategy selection under different conditions. We can conclude that: countries with high financial openness in the China-ASEAN region are actively committed to supervision cooperation; and with the acceleration of financial integration, it will help to maximize the social welfare if the countries with low financial openness join the cooperation. Hence, to strengthen the China-ASEAN cooperation in banking supervision, we should set up a multi-level cooperation framework, found authoritative organizations and establish uniform rules.