The Perfection Of Chinese Financial Regulation Mode

With the continuous development of China’s financial sector and the easing offinancial policy after35years of reform and opening-up, the cooperation betweenfinancial sectors gradually develops in depth. Various rules greatly broaden the scopeof finance departments crossover operation and even the capital cooperation offinancial institutions. On one hand, it improves the management efficiency of thefinancial industry, promotes the prosperity of the financial market. On the other hand,financial regulation system established and developed in the segregation operation inour country is challenged.This paper analyzes the defects in the financial regulatory system by means ofstudying financial laws and regulations, and find that the defects existing intrinsicly inthe financial supervision and regulation and affected by regulators concept directly.Rule-oriented methods, fragment, isolation of inancial regulation legal system are themain reasons for the regulatory legal defects.Then this paper elaborates and evaluates the important content of the UKFinancial Service Law（2012）, unearthed points worth our attention and reflection: the compound regulatory model types; coordinate macro-prudential regulation andconsumer protection targets; People cross served between regulators; Coordinationand balance of regulators’ power; Regulatory dispute resolution mechanism. Withreflection, our financial regulation mechanism can be found that there is a lack offinancial regulation principle (target) rules and enforcement mechanism, coordinationand balance mechanism between regulators.So the author combined with relevant theory and practice of the United Kingdomand put forward a typological supervision mode combining centralization anddecentralization. This supervision mode learned from the spirit of British two-peaksregulatory model, means regulation according to the type of financial institutions orfinancial business types of regulators, financial institutions with different risks appliedto different levels by classification regulation. The "centralized" level regulatorsmonitor， identify important systemic risk of financial institutions. Regulatoryauthority is partitioned by the different types (nature)of financial business andinstitutions at the level of "decentralized" regulation, and achieve the internalseparation of business regulation and institution regulation. At the same time theresupposed to be specific supervision coordination and information sharing mechanism,and embedded in the checks and balances and dispute settlement mechanism. And thecentral bank should be entitled to make recommendations on macro-prudentialregulation.