Research On Strengthening Financial Supervision In China

The finance is the nerve center of the modern economy,and the bank is the pinciple axis of the fiancial industry,so strengthening of finance supervising and managing is a important content to national macroeconomic regulation and control.Since the reform and opening up in china,the economical and financial structure have undergone tremendous and profound changes. Finance has became the core of china's economy and been playing a key role in the game. The last few years has been a period that both domestic and foreign financial industry developed rapidly and experienced great variables. With the development of the financial industry and changes in the external environment financial supervision in china is now facing great pressures and challenges.Firstly,new trends in development of the financial industry ,includes mixed operation modes,application of financial innovation and financial international M&A,bring enormous challenges to the financial supervision in china. Secondly,the market withdrawal mechanism of financial institutions doesn't work soundly in our country,as a result,the market decipline can't incentive or bind financial institutions effectively. Thirdly, there are a lot of deffects in the informantion declosure system,in ways and means of financial supervision ,in legislation and implementation of laws,which hinders the role of financial supervision to play.Additionally,the article focuses on the objects of financial supervision -financial institutions,whoes own problems also prejudice the financial supervision.The big four,the small and medium-sized institutions and the polical banks are individually at different stage of development.While their old ills are solving gradually,some new contradictions exposes.This situation is harmful to the further reform of these institution.To address the above issues,on the base of drawing on other coutries's experiences,the article come up with strategies and recommandations from 3 aspects. 1 .Government should change behaviour in finan supervision and the internal control system of financial institutions should be strengthened.2.Coordinaration and cooperation mechanism of financial supervision should be established soundly.3.Deposit insurance system and Risk warning mechanism should be improved to meet present situation.