The Analysis Of Japan's Financial Regulatory System And Its Reform

Japan, as the world's most important developed country., through continuous improvement and development of financial regulatory system, promote its healthy and stable development of the financial sector. Analysis of experiences and lessons learned of the process of the reform is important reference for the establishment and development of financial regulatory system of our country.Financial regulation is the unity of financial supervision and financial management. financial regulation are divided into narrow and broad. The narrow sense of financial regulation is supervision and management which is implemented to the entire financial sector by the financial regulatory authority authorized by state laws and regulations. Broader regulation of financial regulation is in addition to the above, also includes internal control and audit of financial institutions, the supervision of industry self-regulatory organization, the supervision of social intermediary organizations. The objectives of financial regulation is to achieve security and stability of the financial system, to protect legitimate rights and interests of creditors, to maintain fair and orderly competition in the financial industry. Financial regulatory system includes cntralized financial regulatory system, the division of labor based financial regulatory system and cooperative financial regulatory system.The content of financial regulation includes access of financial institutions,operation of financial institutions and wthdrawal of financial institutions The tools for financial regulators includes legal instruments, administrative tools, technology tools, economic tools.The goal of financial regulation is as standards of Japan's financial regulatory system to constantly improve their own. The development process consists of two phases:the first phase is the Japan's financial regulatory system which is from Japan's early postwar period to the 20th century,90 years,the second stage is the Japan's financial regulatory system which is the reform of the 20th century, after 90 years.Japan's financial regulatory system in the first stage is divided into two phases, specifically including he financial regulatory system in Japan which is from the early postwar period to the 20th century,70 years and the Japanese financial regulatory system of 70 years after the 20th century. The characteristics of the financial regulatory system which is from the early postwar period to the 20th century, Japan's 70 is that the administrative tool is oriented to take single long competitive regulatory regime and restrictions on the regulatory approach. Its role is not only maintaining the stability of financial markets in Japan, but also promoting rapid economic development in Japan. After 70 years of the 20th century Japanese financial regulatory system is characterized by a liberalization of interest rates, a liberalization of financial institutions and business cross, relaxation of exchange controls, Its role is that enhancing Japan's international financial position, promoting the Japanese financial institutions to enhance market competitiveness and the balanced development of Japan's financial structure.There were some problem in theJapan's financial regulatory system of the 90's before 20th centurys, specifically including the administrative intervention in color of Japan's financial regulatory system too thick, the lack of independent decision-making power of the Bank of Japan and the lack of construction of remedial network in the financial system of the Japanese financial regulatory system, giving rise to and the increase of the Japanese "bubble economy" which led to huge non-performing loans of Japanese banks, the collapse of a large number of Japanese financial institutions.To maintain its financial stability, the rapid development of economic recovery, The Government of Japan starts to do a series of reforms to the financial regulatory system in 90 years after the 20th century, Including the reform of Japan's financial regulators, the changes of financial regulatory approach from separate supervision to the functions, and paying attention to the contents of the entire process of supervision, And made a series of results, including the enhancing of the overall competitiveness in the market of financial institutions in Japan the speeding up of the resolution of NPLs of Japanese financial institutions, and promoting the recovery and developmen of Japan's financial system. The trend for Japan's financial regulatory system including the establishment of a comprehensive monitoring mechanism,the effective monitoring of the management of financial institutions, and promoting the publicity and transparency of financial markets, strengthening the international cooperation and communication of financial regulators.Through a summary analysis of the reform and development of Japan's financial regulatory system. China's financial regulatory system should be strictly regulated in the management of financial institutions. improving the construction of financial regulatory system, and strengthening the comprehensive nature of financial regulation, establishing international standards in the financial regulatory system,so as to continuously enhance our market competitiveness of financial institutions and its ability to withstand financial market risks,and maintain the health of the stability of the running of the financial system, and promoting the rapid economic development of china.