On A Separate Operation The Transition To The Financial Supervision In The Transformation Process Is Mixed Operation

In response to the global trend of financial integration since 1980s, especially 1990s,and aiming at an effective financial supervision, a growing number of countries have been adjusting their framework of financial supervision and heading to the ultimate goal of centralized regulation according to their pace of financial integration. To some extent, the ever outstanding financial integration is one of the fundamentals to the reform of financial supervision. Some countries established a centralized supervisor which assumes the responsibilities of supervising all the financial institutions while others gradually integrated two supervisors in major fields such as banking with insurance or with securities. There are also countries which made several changes to the way of supervision while maintaining the present framework of separated supervision. It is evident that there is no such "the best way of financial supervision". We should choose the framework of financial supervision that best suits us according to our own situation.In recent years, the trend of financial integration has becoming more and more evident. Crossing business activities, financial conglomeration, flocking foreign institutions, together with other financial development and innovation are posing unprecedented challenges to our present framework of financial supervision. Chinese financial system has been intentionally separated and the business activities are constrained in their own field. But there are already signs of financial integration and integrated supervision. We have to respond to the setbacks erupting one after another, including the restrictions posed by the outdated laws and regulations, the malpractice of the financial institutions and the defaults of present financial supervision. Since China is not ready for a total financial integration and integrated supervision yet, we do not feel the urgency to establish the centralized supervision very soon. At this moment, it is necessary for us to borrow lessons from other countries and, while maintaining the present situation, make relevant improvements so as to achieve a perfect transition into the era of thorough financial integration.