Study Of China's Financial Regulatory System

The U.S. sub-prime mortgage crisis which have outbreak at the end of 2007 became a sweeping global economic crisis. It led to the worst postwar recession under the influence of globalization from the depth of economic integration. "Chaos, there must be some orders when there is crisis, there must be some system after the orders", although the tide of the crisis has begun to gradually subside, but the crisis will leave impaction to the issue of the developed countries'and even the whole world's financial regulatory system.Financial regulation theory in parallel with the development of mainstream economics followed a crisis-oriented path. The erupting of crisis and the deepening understanding of the crisis itself promoted the theory of financial regulation to change and rich. Economic liberalism, state interventionism, political economy, law and other financial regulatory theory guided the development of financial regulatory practices of Western countries for hundreds of years.Financial supervision, in order to keep the financial markets open, fair, orderly competitive and effectively preventing and defusing financial risks, protects interests of the depositors, investors and the insured as the goal. Financial supervision also takes effectiveness criteria as that if it promotes financial management and monitoring system innovation. Under the tissue types of supervision, the financial regulatory mode can be distinguished to unified regulatory system, separation of the regulatory system, and hybrid control system; under the object type of the supervision, the financial regulatory mode can be distinguished to body-supervision system and function-supervision system. The world's major developed countries use different categories of financial regulatory system according to their political system, cultural traditions, legal environment, financial structure and other factorsReform of the world's financial regulatory system has experienced along four stages of the natural development of theory and practice, the safety first, the efficiency first, the safety and efficiency both important. In recent years, with the accelerating process of economic globalization, financial globalization and financial liberalization, financial supervision faces new challenges coming from financial innovation. The future development of the financial regulatory presented to four aspects of new trends that the body-supervision model changes to the function-supervision model, separation of the regulatory model changes to uniform of the regulatory model, government regulation combines with the non-government regulation, international cooperation in financial supervision is to be strengthen, what provide a useful inspiration for the financial supervision in China.Summing up experiences and seeking enlightenment are our fundamental goals. During the thirty years after China's reform and opening up, due to the changes in the economic system, the operating status of Chinese financial institutions had also undergone profound changes. China's financial regulatory system also changed gradually from the original low-level unified regulatory system to the present "One Central Bank & Three Regulatory Committees" sub-sector regulatory system. The financial industry mixed wave and the challenges faced by China after it joined the WTO make us have to examine that if the sub-sector regulatory system is able to adapt to the requirements of new posture. The poor capability of consolidated supervision, the lack of coordination, the imperfect of regulatory environment, and the shortcoming of institution building become serious problems that should to be solved.Financial regulation is a complex system of factors working together as regulatory subject, regulatory object, and regulatory environment. Due to address the challenges faced by the financial industry and to solve the above problem of China's regulatory system, we need to carry out a series of reform. It includes of setting up the National Financial Regulatory Committee, improving internal control system, information disclosure mechanism and the legal system of supervision, building the deposit insurance system and the self-regulatory bodies gradually, in addition, international cooperation between the financial regulators of different countries is particularly important. Only on the condition of focusing on a number of aspects from the above, China's financial regulatory system can adapt to the situation of the global financial industry, China's financial industry and the national economy can have healthy and stable development.