International Comparative Study On The Effectiveness Of FinTech Regulation

IT revolution is basic motivation for the development of economic globalization.IT revolution is integrating the world into the "Internet economy",which makes the capital,information and talents around the world circulate in a much more rapid way.The financial industry aroud the world is undergoing a change of financial structure brought by IT.With the promtion of economic globalization,the free flow of international capital has accelerated the evolution of Internet finance.For China,the change in the financial history has been particularly fierce.The rise of Internet finance also gathers a lot of risks.Since 2013,the new Internet finance model represented by P2 P and crowdfunding has developed rapidly in China.At present,China has overtaken the United States to become the largest country of P2 P Internet loan in the world,which is accompanied by a series of regulatory problems of Internet financing,and increasingly rampant criminal activities such as network fraud and illegal fund-raising.The prosperity and development of Internet finance not only poses threat to the traditional financial situation and industry status of our country,but also challenges the current regulatory system.In recent years,although Internet finance has attracted a lot of scholars’ attention with abundant theoretical research achievements,many issues such as the nature,connotation,risk and the effect on industrial policy of Internet Finance differ more than consensus,and many problems in the development theory of Internet finance need to be studied and solved urgently.Compared with the traditional finance,the risks brought by Internet finance is more alienated.Its high infectivity,rapid transformation and systematicness have brought difficult problems to the financial supervision of various countries.How to supervise and how to supervise without restraining the financial innovation are the common problems faced by the supervision of our country,which is also the topic of this paper.At the same time of economic globalization,under the influence of different national systems,there are differences among countries in Internet financial supervision,and different countries have different experience in financial risk supervision,forming a unique supervision system.Internet finance has been introduced into China from developed countries in the United States and Britain.Especially,Internet Finance in the United States has developed for more than 20 years,and has formed a set of Internet financial supervision system with laws as the arrangement of supervision and management system,with self-discipline as the main and other laws as the auxiliary.However,China’s traditional financial supervision system has been impacted by Internet finance,forcing regulatory reform in return.Since 2016,the internal restructuring of regulatory agencies has been carried out.For example,the former CBRC newly established the Inclusive Finance Department to specially supervise P2 P and other online lending.It should be said that China’s Internet financial supervision has just started.This paper uses theoretical analysis,case analysis and empirical analysis methods to make a comparative study of Internet financial regulation in China and the United States.This article are divided into three parts,the first part is the introduction,literature review and Internet Finance in China and the United States,China and the United States about the Internet financial supervision and control of all kinds of basic theory and A review of previous studies,mainly covers the annotations associated with the Internet financial definition at home and abroad and its development in the process of the relevant document literature,with its accompanying risk and regulation;The second part is the regulatory framework and institutional changes of Internet finance in China and the United States,the theoretical framework of the effectiveness of Internet financial regulation in China and the United States,the empirical research on the effectiveness of Internet financial regulation in China and the United States based on macro data,and the effectiveness of Internet financial regulation in China and the United States based on the micro-practice perspective of different types of business.The third part is the enlightenment,the policy recommendations and the full text conclusion.Based on the full text analysis,some significant findings and conclusions are drawn.Empirical findings: For China and the United States,both regulatory responsibility and regulatory independence will increase the level of financial risk;The responsibility of supervision significantly inhibits the improvement of operating efficiency;The regulatory responsibility(EFF)has a positive effect on the scale of financial business;The level of science and technology has a significant impact on the regulatory efficiency of Internet finance in China and the United States.Technological progress is an important force to promote financial innovation.Internet finance can be developed unprecedentedly worldwide,largely due to the coupling of technology and finance.Compared with China and the United States,the degree of sensitivity of the accountability and independence of Internet financial regulation in the United States to the risk level of Internet finance is lower than that in China.In other words,the change of the accountability and independence policy of Internet financial regulation in the United States has less impact on the change of the risk level of Internet finance in China than that in China.In the operational efficiency model,the effect of regulatory independence on operational efficiency in China is much higher than the average effect value in China and the United States.In the business size model,the incremental effect of regulatory independence on business size in China should be greater than that in the US.It concludes that the essence of the heterogeneity of the effectiveness of Internet financial regulation in China and the United States is caused by the differences in regulatory concepts,the completeness of the financial system and legal basis,and the differences in the origin of institutions formed by the crisis.At the same time,we should also see that China,as a big country of Internet finance with the advantage of being a latecomer,is evolving towards homogeneity in five aspects,namely,the formation of the regulatory framework of Internet finance,the divergence between institutional supervision and functional supervision,the logical consistency between behavioral supervision and prudential supervision,consumer protection and big data supervision.Regulatory Sandbox will be the future of Internet financial regulation in China.