The Research Of Financial Supervision On The Development Of Finance Companies In China

Although great achievements have been made in Group Finance Companies recent years, more conflicts are emerged between Finance Companies and outdated financial supervision in China. Four major conflicts are listed as below.1. The Game between the fast business development demands of Finance Companies and the over steady compliance supervisory theories of Regulatory Departments.2. The incomplete corporation governance of Finance Companies leads to contradictions among group's actual control, independence requirements of Regulatory Departments and outdated supervisory methods.3. The new business demands of Finance Companies are constrained by multi-supervision of different regulatory departments.4. The development of Finance Companies is blocked by low efficiency and regulation vacancy that is caused by Regulatory Departments'ambiguous responsibility, unfair rewards and punishments.All these conflicts are taking challenge of Regulatory Departments'theories, manners, systems and internal managements.According to the analysis of effective supervisory game theory and regulatory practice, this thesis raises several supervisory countermeasures.1. Establish risk-based category supervisory concepts and treat various Finance Companies differently according to their risk evaluations.2. Establish complete corporation governance in Finance Companies by setting director-duty system to improve the function of directorate and carrying out extended investigation authority to overawe the groups.3. Promote functional supervisory system, strengthen supervisory linkage between each regulatory department and reduce ties of multi-supervision towards the Finance Companies.4. Compartmentalize responsibilities clearly, strengthen encouragement system, and improve the supervisory efficiency of regulatory departments to catch up with the development steps of Finance Companies.