Study On Legal System Of Financial Supervision In China Under The Model Of Mixed Operation

Finance is the core of contemporary economy. Efficiency and safety of one country's financial industry can directly affect its economic development. There are two models of financial institution operation in the world: separated operation and mixed operation. Under the model of separated operation, banks, security companies, insurance companies and trust companies must focus their business on their own industries, instead of intercoursing with each other. The system requires that there should be anti-fire wall between financial sectors in order to separate their respective risk. Under the mode of mixed operation, a financial institution can provide its customer comprehensive financial services and products, reduce transaction costs, increase efficiency and disperse risks by diversified operation. By reviewing the history of financial operation model development, we may find the tendency is mixed operation---separated operation---mixed operation. Generally speaking, separated operation emphasizes stability of financial system but mixed operation stresses efficiency. At present, Chinese financial sectors operate separately and supervisory organizations superintend separately. With China entering into WTO, more and more foreign financial institutions come into China, and cause strong pressure to Chinese financial institutions. Both the economic environment and the interests need of Chinese financial institutions will let mixed operation become inevitable choice of Chinese financial industry.Financial industry can't run smoothly and healthily without effective and supervision. And efficient financial supervision depends on perfect legal system of financial supervision. Chinese legal system of financial supervision has been not suitable for actual demand. On one hand, Chinese legal system of financial supervision contravenes legal principles of WTO. On the other hand, upsurge of mixed operation forms big challenge to Chinese legal system of financial supervision. For this reason, we must transform Chinese legal system of financial supervision. In recent years, many countries such as the U.S.A, Britain and Japan have transformed separated operation into mixed operation, and enacted a series of financial supervision law. In 1999, the U.S.A issued Financial Services Modernization Act, symbolizing that new mixed operation has taken the place of separated operation. In Britain and Japan, unified supervisory authorities have been established to replace decentralized superintendence. We should research useful legislative experience of other countries.In order to establish Chinese legal system of financial supervision under the model of mixed operation, several fundamental problems must be solved at first. With regard to legislative value option, financial efficiency should be highlighted. About system of supervision organizations, on the basis of dialectical law of regulation---innovation---regulation, function-based financial supervision system should be built up and the National Financial Supervision Bureau should be set up to regulate financial trade uniformly and solve the problem of supervising financial innovations. What' more, we should build up such a cubical financial supervision organization system that integrate the financial authority' supervision with financial trade self-discipline, social supervision and discipline of inner financial institutions. At the same time, we should organically integrate stability and flexibility of financial supervision law, change legal system of financial supervision in line with provisions of WTO. Law and regulations such as Law of Commercial Bank, Insurance Law and Security Law that are not adaptable to mixed operation must be revised, and rules on financial holding company and network-bank will be formulated and consummated.Performing legal system of financial supervision is a gradual process. In the near future, moderate mixed operation should be encouraged with financial law and regulations being revised to permit mixed operation. At the same time, cooperation and...