The Research On The Cooperation Mechanism For Financial Regulation And Supervision In China

As financial globalization develops, ties among financial markets all over the world have been strengthened, in which financial products have been complicated more and more. It is urged that financial regulators enhance coordination and cooperation among them. Thus, the trend of "synergy" appears in financial regulation and supervision. To deeply research on the theory, method and mechanism of the synergy, the author tries to use open system analysis and synergetic analysis, by introducing synergetics, a branch of system science, to explore internal movements of financial system and analyze the cooperation mechanism for it systematically in our country.Firstly, the dissertation started from teasing the existing studies on financial regulation and supervision out. Findings indicated that the focus of these studies had been turned from answering why to regulate to answering how to enhance cooperative regulation. But the theoretical basis of the latter was relatively weak and researches in this field were inadequate. That's because most of the former studies concentrated on analyzing financial regulation from the angle of how to meet the demand of economic and social developments, ignoring internal movements of financial regulation system. It's necessary for us to lay a solid theoretical foundation on financial cooperative regulation and establish the theory of cooperation mechanism for financial regulation and supervision, by exploring the movements inside the financial regulation system. So the author proposed a theoretical framework based on synergetics to analyze the mechanism. According to the framework, the paper would study on feasibilities and necessity of applying synergetics to financial regulation, internal movements, subsystems, order parameters and the synergetic degree of financial regulation system and how to design the mechanism for cooperative supervision.Secondly, after introducing synergetics in system science and its application to other subjects, the paper demonstrated the feasibilities and necessity of applying it to the research of financial regulation and supervision by analyzing the characteristics of financial regulation system. The author argued that not only synergetics be feasible to applying to study on financial regulation system, but also its application be vital to analyze internal movements of the system. The reason was that synergetics can help us to find factors promote the system to become an orderly, self-organized, synergetic one. We can also get to know the synergy in the system and how it guide the direction for the system.Thirdly, the author found the theoretical basis and an evaluation method for cooperative regulation, by analyzing the financial regulation system both theoretically and quantitatively. She divided the system into three subsystems, including banking supervision, securities supervision and insurance supervision. After studying movements among the three subsystems, she concluded that the merge of objects be supervised was the main reason that caused the synergetic movements appear among the subsystems and the synergy was the most important force that made the system become a self-organized synergetic one. The consequence of internal movements is to set up a cooperation mechanism for financial regulation and supervision, which laid an important foundation on establishing the cooperation mechanism. After that, the author analyzed order parameters in the system and set up a model to calculate the synergetic degree of financial regulation, which provided an evaluation method for cooperative regulation. She used relevant data in China's economy to calculate the synergetic degree in our country. The model concluded that insurance supervision was quite on top in the three subsystems, banking ranked the second and securities was in chaos in the observed period of time. As a whole, the synergetic degree of financial regulation and supervision in our country was zero. China's financial regulation system was in chaos relatively, in which subsystems had little relevance in that period of time.Finally, on the basis of analyzing some cases happened in the past thirty years all over the world, as well as successful experiences in some typical countries'current practices, the author elaborated her points of view on China's strategies on accomplishing the mechanism. It's indicated that cooperative regulation in our country lagged behind, compared with that in mature markets abroad. Some practical suggestions were put forward to guarantee the financial industry a healthy development. She recommended that considering conditions of our country, Chinese supervisors should take successful practices in foreign countries as reference, design the mechanism on four aspects, such as accomplishing system construction, improving the legal system, sharing information and personnel training.