Research On The Coordinating Mechanism Of Financial Supervision In China

The financial supervision system of China was established under the principle of separated supervision. For a long time, the supervisions in banking, security industry and insurance have been separating from each other and worked in their own ways. Being lack of coordinating mechanism, the people's bank of China and its branches can not communicate and cooperate with other financial supervision sectors and financial organizations timely and efficiently. They can not share information with each other, which leads to an inefficient financial operating system. Therefore, we should build up coordinating mechanism of financial supervision immediately.This paper started from the basic concept of the coordinating mechanism of financial supervision. Firstly, the goal-oriented theory and the foundation of financial supervision system were introduced. The necessity of the coordinating mechanism of financial supervision, the cost and the benefit of the supervisors and the operating situation were demonstrated by economic theories. Under the situation of increasing tendency of mixed operation and more financial innovations, the paper reviewed the development course of financial supervision system in China, and explained the coordinating problems that were existing in the present financial supervision system.After introducing the coordinating mechanism in the western developed country and analyzing the current supervision situation in China, the paper summarized the current international trends and advanced experience that could be learned in building the coordinating mechanism of financial supervision in China. In the end, positive suggestions were raised in accelerating financial reform and building up the coordinating mechanism of financial supervision with Chinese characteristics.