The Financial Market Structure And The Protection Of Financial Consumers’ Rights

Financial consumer protection issues are concerned by scholars in various fields and policy makers long time ago,this issue has again become the focus of attention after the financial crisis,because lack of protection of financial consumer is one of the important reasons for the financial crisis.After the crisis,academia and regulatory agencies began to re-reflection about the financial consumer protection issues, and trying to gradually improve the level of protection for financial consumers.At present, research on the protection of financial consumer is still in the exploratory stage,however, studies on the structure of financial markets have matured,this paper will be linked both to explore the relationship between them.There are many methods measure the structure of financial markets,in this paper, in order to more accurately describe the market structure of the banking and securities, taking market concentration method of structural methods and PR model approach of non-structural methods.The two methods are used simultaneously, that can effectively prevent only one way to bring the deviation and learn from each other, make a more accurate description of the structure of the banking and Securities. Because China’s banking industry is dominated four state-owned banks, several large national joint-stock commercial banks also have a pivotal position,therefore, the market concentration methods calculate the values of CR4and CR13,in order to facilitate comparison of the banking and Securities, the securities industry also calculate the values of CR4and CR13.Market concentration methods show that the values of CR4in the banking sector are in between0.5and0.6, and the values of CR4in the securities industry are between0.2and0.4,obviously the degree of monopoly of the banking is greater than the Securities,the values of CR13of the banking and Securities have the same results.In order to more accurately measure the market structure of the banking and Securities, this paper uses PR model approach of non-structural methods,PR model shows that all the values of H in the banking are near0.1,the maximum value of H is only0.33,this also shows that China’s banking industry is basically in a state of monopolistic competition,for the Securities, PR model show that the values of H are greater than the values of H of the banking in the same year,banking, and many values of H are close to1,this once again proves the degree of competition in Securities is more than banking, and Securities basically close to perfect competition.In this paper, the measure of protection of financial consumers learn from LLSV,laws and regulations are assigned according to a certain standard,and eventually we get an annual level of protection of financial consumers.After a measure of the level of protection,we find that the level of protection of securities are greater than the banking in the same year, and the level of consumer protection in the banking and Securities are increasing year by year.Finally, this paper take empirical analysis about the relationship between the financial market structureand the level of consumer protection in the banking and the Securities.Empirical analysis find that there is a positive correlation between the level of competition and the level of financial consumer protection either in the banking or the securities.The paper explained this phenomenon, and finally made some policy recommendations to strengthen financial consumer protection.