Economic Analysis On How To Perfect Financial Supervision Mechanism Under The Trend Of Financial Innovation

In course of finance globalization and liberation, the speed of financial innovation is fabulous. There may be financial risk or financial crises following the financial innovation. It always makes the economy growth uncountable destruction. At the time when we develop the positive functions of financial innovation, how to regulate financial innovation to avoid financial crises is a topics in theory field and a problem in practice field.Firstly, the passage reveals positive effect and negative effect of financial innovation, then it analyses the relationship of financial innovation and financial supervision in method of cost and income. At last, the passage gets its viewpoint that the most desirable Financial Supervision could not only resist financial risk but also promotes the development of financial innovation effectively. The following chapter sums up the common characteristics of developed country's financial innovation. In the last chapter, the passage introduces the problem and developing trend of financial innovation in our country. Finally, the essay putts forward several suggestion bases on the problem of our country's financial supervision.This essay reviews the history and present changes of financial innovation in developed country. After that, the essay advances some suggestion for financial innovation in our country. So the research in this essay uses the method of standardization and demonstration. In addition, the essay establishes game model to discuss the game relation between financial innovation and financial supervision in different conditions.The innovation of the essay is its research point: nowadays, financial innovation and financial supervision have their new development. How to perfect financial supervision for financial innovation in order to resist financial risk as well as develop harmoniously with financial innovation needs to be considered. Some specific advices are given in the last part of the essay for financial supervision in our country according to its problem. These advices turn into an innovation in this essay.