Research On Internet Financial Risk Supervision

With the rapid development of information technology, many financial service modes based on Internet arise at the historic moment and has had a profound impact on the traditional financial industry. In recent years, along with the rapid integration of Internet technology and traditional financial industry, innovative financial modes have promoted the development of domestic Internet finance, represented by Internet banking, peer to peer lending, and e-bank financial management. On March 5th, 2014, the 12 th session of the National People’s Congress second conference reviewed the government work report "to promote the healthy development of the Internet finance, perfecting financial supervision coordination mechanism". This is the first time Internet finance is mentioned in the government work report, which marks the Internet finance has come into focus for decision makers, reflects the Chinese government’s openness, its ruling ideology of realizing inclusive growth, its determination of pushing forward financial reform, and its basic principle of encouraging innovative development. The issue also marks Internet finance has formally entered the developmental sequence of China’s economy and finance, and is expected to gain its due market positioning and the appreciation of decision makers.In the face of the Internet financial risks that may occur in China, neither can we take a laissez-faire attitude, nor should we knock it down, but to find out a compromise between financial innovation and regulation that can help the harmonious development of society, economy and finance. To effectively manage risks of China’s Internet finance, Chinese government should act as a leading factor, coordinated with legislative institutions, administrative departments, enterprises, industry associations, investors and consumers. Based on the comprehensive research methods such as theoretical exploration, empirical analysis, data investigation, experience summary and decision thinking, by analyzing the present situation of China’s Internet finance regulation and the existing problems, combined with theories and practice, learned from the international modes and experience, this paper makes suggestions as to enhance China’s Internet finance risk regulation, such as perfecting laws and regulations, building a multi-level regulation system, enhancing Internet financial consumer protection, promoting international exchange and cooperation, and so on.There are three highlights of this paper. First of all, this paper studies the Internet finance risks in an all-round way at the height of government agencies, which conforms to the attribute that most of China’s financial laws and regulations are made by top-level, without constricting the ideas by just focusing on certain districts or projects. Secondly, this paper puts out a broader analysis by covering almost all aspects of this industry, and offers comprehensive and targeted advice. What’s more, suggestions in this paper aiming at the existing problems are based on the real situation of China’s Internet finance and actual risk regulation practice, which will be more operable.