Economic Analysis Of Law On Supervision System Of Mixed Financial Operation In China

Reasons and purposes:With the end of WTO in the interim ,our finance firms had have the need of mixed financial style, at the same time a large number of foreign countries have given up its separated operating system and regulatory system to adopt mixed financial style. In the new situation a large number of foreign countries have emended the law about financial supervision. in order to supervise effectively the comprehensive operations. But our financial supervising system current still is separated operating system, obviously, it is not suit for the current situation, and if our do not reform the financial supervising system, it will increase the cost of financial supervision and law. So in the face of our mixed financial style, it is very important and signality to discuss the supervision. in our financial system.The structure and contents:The article contains four chapters and the main contents are as following:The first chapter analyzes the history of our financial supervising system, questions of our current financial supervising system and the challenge of comprehensive operations. Our financial supervising system have gone through four times reform, The first reform is the elementary stages of People's Bank of China started to function solely as the central bank form1984 to 1992, the second reform is the stages of rectify financial regulation form 1993 to 1994, the third reform is financial regulation into the stages of there are laws to go by form 1994 to 1997, the fourth reform is deepening the financial reform form 1997 to now. Our financial supervising system has been segregated operation and augmented supervision through four times reforms. Because of continuously enhanced international competition of financial and our banking system is caused by some comprehensive operations phenomenon, it is challenged our financial supervising.The second chapter uses the law and economics analyzes our currents supervising of financial comprehensive operations. It mainly says what is law and economics, and uses the supply-demand analysis method and the cost-benefit analysis method in law and economics as the tools to analyze the convergent financial service and the financial supervision. Law and economics is use the method of economics to analyzes the question of law, and it is mainly based on new institutional economy's theory, use the microscopic economics and other theories about economics to deeply analyze the law's forming, structure, process of law, efficiency, innovation and development. Now the tendency of comprehensive operations is even more clearly, it is very necessary that we use the law and economics to analysis our financial supervising system, it can rise efficiency of financial supervising and reduce the risks. The author finds, since Reform and Opening-up, china financial institutions is in non-balanced state for a long time. One of the straightforward representations is that the financial institutions changes can't be suitable for economic structure changes. Another is the financial demand of private economy can't be satisfied from the formal financial system. The origin of the unbalance lies in close relationships between state-owned economy and state-owned financial system. And the interest group activities during the period of post SOE may continue strengthening this kind of inefficient relationship financial institution arranging. So, the primary task of China financial reform should be to change these institutions, and promote the transition of the financial system.The third chapter researches and summarizes the financial supervising system of overseas contents of Britain, America, and Germany. I find different countries exist different problems in financial supervising system and the system or structure of financial supervising is not immobile. The financial supervising system will change by financial management, for one country the key is find the financial supervising system is suit for banking management, but it is not that one management suit for one supervising system.The forth chapter suggestions that how to establish our current financial supervising system, including the establishment of the law of financial supervising system, cooperative financial organization, and so on.