Reflection And Reconstruction Of The Financial Regulatory System

Financial innovation is a trend that the capital market can not resist. The regulatory vacuum and cross-regulation resulting from the financial innovation call for a solution, which is "the modernization of financial supervision". Which the United States has adopted a mixed model of financial supervision and has promulgated a series of corresponding laws, as well as the United Kingdom, which has adopted a highly centralized and unified financial supervision model. Under the management of the FSA, the development of British domestic financial industry also has grown by leaps and bounds. Without exception, in the countries with highly developed financial markets, financial supervisions have emerged signs of integration. These are, in the Legislative level, the introduction of integrated financial law, and in the enforcement level, the establishment of unified financial supervisory agencies.The financial industry is accompanied by high yield, high risk, and significant external effects. The crisis triggered by the financial institutions is characterized by sharp deterioration and rapid spread. In the past decades, the collapses of financial institutions occur worldwide from time to time, as a result, the effectiveness of financial supervision has attracted more and more attention. The existing experience has shown that an effective financial supervision is an integrated system supported by three pillars, and consisted of the three-tier network. The so-called three pillars are: a sound system of laws and regulations, efficient organizational system and effective constraint mechanism of the market system. The so-called three-tier network is: strict internal control of financial institutions, effective external oversight of the regulatory authorities and orderly market constraint. This should be also the overall object of China's financial supervision reform. The financial crisis exposed the defects of traditional regulatory approach based on self discipline and discretionary power, led the regulators to rethink about different types of supervisions, and to actively explore new ideas and the mode of regulation.This paper comprises three parts: Partâ… : Introduction.Partâ…¡: Text.The First chapter describes the characteristics of the financial industry andintroducing the basic characteristics of the financial industry, as well as the legalnature of financial products. With the understanding of the historical origins of thefinancial industry, analyzing the basis and driving force of financial industry.Chapter one focuses on the current trends of the financial industry and its riskanalysis, to explain the advice of researching and monitoring financial industry, aswell as national legislation to further strengthen the regulatory trends.The Second chapter is the general principles of financial supervision. Introducing thelegal nature of financial regulation, the basic financial supervision model, with anemphasis on the US model and the British model, and pointing out that, before thisfinancial crisis, there have been signs of integration in financial legislation andregulatory organizations of the USA and GB.The Third chapter is a combination of financial innovation and financial supervision.Introducing the existing financial regulatory system and its the inherent defects,analyzing the risks and challenges that the financial regulatory system faces, theauthor believe that, under the existing financial regulatory system, "financialtsunami" is inevitable. This chapter also points out the impact of financialliberalization and financial innovation to the concept of financial supervision throughthe analysis of the analysis of the economic foundation and special roots of financialsupervision.The Fourth chapter introduces the development of the theory of financial supervision,including the relationship between financial innovation and financial supervision, thedevelopment trend of financial supervision and the Enlightenment of domestic andforeign financial supervision theory and practice.The Fifth chapter is about the financial supervision legislation, introducing thefinancial integrated law, the relationship of financial integrated law and China, andexploring the developing paths of China's financial integrated law. On the basis of theexisting laws, reforming and perfecting China's financial supervision legislationshould be an active respond to the trend of "the modernization of financialsupervision".The Sixth chapter is about the reconstruction of financial supervision organizationalsystem, introducing the status of China's financial supervision organizational system, the basic theory of financial supervision, the value orientation of financial supervision , financial monitoring system and the transformation of the organizational system.Partâ…¢: Conclusion. The author describes the idea of remodeling the structure of financial supervision and. In the era after the financial tsunami, the purpose of writing this article is to perfect the financial legislation and financial supervision organizational system.