The Research On China's Coordination Mechanism Of Financial Supervision

Along with China Securities Regulatory Commission, China Insurance Regulatory Commission, China Banking Regulatory Commission has been established one after another, China's financial supervisory framework has been basically formed. At present, the mode of "One Central Bank and Three Commissions" which is lacking of effective coordination mechanism of financial supervision, results in increasing friction between the People's Bank of China and various supervisory institutions. In particular, the mixed operational trend has emerged in recent years which also produces vacuum in China's financial supervisory framework. Therefore, it is essential to learn from foreign developed countries in order to establish China's coordination mechanism of financial supervision and improve the efficiency of supervision. This paper outlined the practice of coordination mechanism in major developed countries, judged from the current situation and existed problems of China's coordination mechanism of financial supervision, analyzed its necessity in details and pointed out that there were two steps of establishing China's coordination mechanism of financial supervision: the first step was to construct "Financial Supervisory Coordination Committee" in order to coordinate different institutions under the present separated supervisory mode. The second step based on the first step was to establish the unified supervisory institution "The State Financial Supervision Authority", which will unify the country's supervisory activities.