New Types Of Financial Organizations And Financial Stability

Constructing a financial system, with the public ownership as the main body,based on market-adjusting, with a relatively open but tight (legal, administrative)supervision and regulation, is the crucial element of China’s economic reform, andsocialist market economic system, Since the reform and opening up, China has beentaking the financial reform as the top priority of the reform. More than20yearspassed, since December1993when the State Council issued the "Decision of theState Council on Financial Reform " and took massive financial reform. In the past20years, China’s financial reform has made great progress, but in the context of China’seconomic transition, there is still many problems which can not be avoided and mustbe solved in this major reform. At present, China ’s financial reform is still in thegame of policies and the market. To further promote financial reform and keepfinancial stability is still faced with some difficulties.On March28,2012, the197th executive meeting of the State Council decided toestablish “comprehensive financial reform pilot area of Wenzhou City”. The StateCouncil required Wenzhou City to construct the financial reform pilot area. inaccordance with12major tasks identified in the overall scheme, including the"accelerate the development of new financial organizations". To establish and developnew financial organizations is a beneficial exploration in financial reform, it should beon the premise of further study of argument. The selection of the models of newfinancial organizations, the standard of procedures and the setting of related reformsteps, should be placed in the scientific and orderly basis. Finance as the lifeblood ofthe modern economy, tend to affect the situation as a whole, therefore, to promote financial reform and the development of new financial organizations, it need positiveand cautious methods.This paper is intend to study the relationship between the new financialorganizations and financial stability in the financial reform, from following aspects:First, the classification and connotation of new financial organizations, mainly on thenew financial organizations, the classification of them, and the significance ofdeveloping a new financial organizations. Second, the new financial regulatorysystem and financial stability, mainly on the impact of financial regulatory systemwith financial stability, as well as the problems in new financial regulatory system.Third, the management structure of new financial organizations and financial stability,mainly on the current situation of the management structure of new financialorganizations, it’s problems, and it’s relationship with the financial stability. Fourth,the new financial organization in Wenzhou City and financial stability, mainly on thecurrent situation of new financial organizations in Wenzhou City, the problemsencountered, and the lessons learned from some cases. Fifth, the thinking andsuggestions, giving some ideas and recommendations on the development of newfinancial organizations.