Value Selection And System Construction Of The Regulation On The Commercial Bank’s Financial Product

The rapid development of commercial bank’s financial products in recent yearsstimulates the possibility of the outbreak of various risk regarding commercial bank’sfinancial products. Systemic risk is one of the most dangerous risks. The bankingindustry is the basic industry of the financial market. Once commercial bank’sfinancial products triggers the systemic risk, it would produce great harm to the bank,banking, and even the national economy. Existing regulation on the commercialbank’s financial products cannot effectively regulate the commercial bank’s financingbusiness. The phenomenons such as regulatory gaps and regulatory arbitrage,concealing risk exist, which endanger the stability of the financial system and damagethe interests of the investors. Existence of problems regarding commercial bank’sfinancial products regulatory system lies in the incorrectness of regulation concept.The regulators have not clarified the meaning and relations of three values involved inthe commercial bank’s financial product: order, efficiency and fairness. Thetraditional regulatory system directed by the one-sided concept of "order priority" or"efficiency first" incurs the defect of regulation system.Commercial bank’s financial product is the product of market competition, whichdetermines its pursuit of efficiency. Adopting various monitoring means is to preventfinancial risks and to protect the order and stability of the financial market. Theprotection provided to investors embodies fairness. The value competition in existingregulatory system of commercial bank’s financial products is a game between orderand efficiency value, but ignores the fairness. The financial crisis in2008gave awarning, that is, ignoring the fairness and order value, simply pursuit of efficiencyand deregulation of financial market will lead to the collapse of the financial order,economic stagnation and even economic depression. The three values, order,efficiency and fairness, seemingly contradictory conflicts, is the unity of opposites infact. Only the ordered, security and stabile market order of bank’s financial productscan provide a good environment to run bank’s financial products efficiently and forbetter and more comprehensive protection to investor. And the investors are more willing to put money into the field to promote bank’s financial products and thenenhance the efficiency of the market. Therefore, the construction of supervisionsystem of commercial bank’s financial products in the future, should be guided by thenew value concept,“order priority, and giving attention to efficiency and fairness” toimprove the regulatory function, strengthen bank’s internal management, and give fullplay to the self-discipline system to further safeguard the stability of the order ofcommercial bank’s financial products. At the same time, in order to increase the legalprotection of vulnerable groups for fairness, perfection regulation system regardingcommercial bank’s financial products should clarify the legal relation of bank’sfinancial products, build and perfect relief and protection system such as therepresentative litigation, so as to promote the healthy development of bank’s financialproducts market in China, and the prosperity of financial market to provide a goodcapital support to the real economy.