Research On Decentralized Construction Of China’s Financial Supervision System

Financial supervision is the foundation and guarantee of financial development. For a long time, although China’s unified financial supervising system of administrative allocating financial resources has effectively contributed to China’s fast economic development, it has also exposed high centralized, high unified and high monopolized deficiencies. Traditional centralized financial supervision emphasizes centralized supervision power by the central government. In the design of this system, local authorities do not possess financial supervision power or financial autonomous development power. Financial regulations are also centralized in the central government while the local authorities have no power on financial legislation. Market supervision mostly depends on policies, and the development of rule of financial law is quite slow. Supervision is mostly compulsively intervened by the government. The internal control system’s function of supervision targets weakens, and the positive supervision function of social diversity has not appeared. China’s separate supervision system of centralization has caused central high monopolization and local high repression and seriously fallen behind of the economic development. It has restrained and impeded financial innovation and become the barrier and shackle to deepen economic reform.This paper selects "Research On Decentralized Construction of China’s financial Supervision System" as topic, regarding financial supervision system as research target and setting financial innovation, financial livelihood-orientated development and financial risk resolution as motivation logic and start of financial system reform, from the perspective of control and extension of financial supervision power, following and maintaining the separate principal line of the reform of financial system, developing an innovative research from three aspects:administrative separation of power of supervisory central government and local authority, financial legislative separation of power of upper and lower level, and transverse government-social separation of power stretching from inside to outside of the government, thus promoting the idea and design of decentralized construction of China’s financial supervision system. This paper utilizes time and space analytic method, setting the vertical review of historical line of financial supervision system, rationally analyzes historical practice and borrows the experience and achievements of financial supervision from western developed countries, at the same time, explores financial supervision theory to guide the innovation of supervision system.Based on the cause of financial supervision system reform, this paper insists that financial supervision should base on the substance and idea of service economy and market adaptation and explore the rebuilding of China’s new financial supervision system. This paper mainly focuses on the contraction and extension of financial supervision power to innovatively propose the decentralized framework of China’s financial supervision system:The first one is to explore power control of central level to power extension of local level though the top-level design of internal administrative power separation of the governmental administrative system. The second is to explore the contraction of central legislation and extension of the authorization to local legislation based on innovative symmetry of legislative system under the demand of the rule of financial law. The third one is to explore the government-social power separation which restrains public rights to develop private rights based on the joint force of public and private rights of diversified financial supervision. The main routing selection:insisting on the administrative power separation rebuilding of central and local financial supervision, reallocating powers, the central government actively simplify administration and delegate powers to lower levels, contracting financial supervision power, promoting the power delegation to local authorities and intensifying local supervision; insists on multi-building financial legislative system, completing central legislation, extending local financial legislation, extending autonomous right of local financial development, promoting the governance framework of central and local administration by law and supervision by law; insists on diversified supervision of social composite strength, effectively restraining excessive administrative intervention of the government’s intangible hand, promoting power separation of the government and society, scientifically and appropriately delegating power to society, reinforcing institutional building of internal controlling supervision, positively exerting the function of diversified supervision of social organization, effectively building the financial supervision system which combines the government, society and enterprises, thus forming financial supervision joint force of social diversity.