The Research Of The Local Financial Supervision System In Henan Province

Finance is the power of modern economy, financial prosperity and development promotes the development and progress of the economy. But, the lack of effective supervision mechanism, once the happen of financial risks,it can make a large negative influence on the macroeconomic, even the regional financial risks make a global crisis. Such as the US sub-prime mortgage loans. Therefore, in this context, the demand of financial regulation will be more and more big. Financial supervision has become the guarantee of the security and the stability of the financial industry development,and it can also become the key of the healthy development of the economy and society. Meanwhile, China's current financial management system with a vertical regulatory system as the main content, which are People's Bank of China, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission. In particular, in Henan province, the CSRC only set up to the provincial level, it means only have a securities regulatory bureau in Henan province. The Insurance Regulatory Bureau in some cities, the Banking Bureau can go to the prefecture level, only the branch of the People's Bank can go to the county.Since the subprime mortgage crisis broke out, a lot of local financial offices has carried on the attempt and exploration in many respects. But the local financial development is still relatively lagging behind, and it has many problems need to be solved. The existence of these problems to our country's current financial supervision system, especially for the local financial regulatory system put forward new requirements. So, the improvement our financial management system, especially the local financial regulatory system has become an urgent problem to be solved. Currently, academia and government have been carried out some research about local financial regulatory' functions and system, but the results of the performance evaluation of local financial supervision are rare. In addition, after the establishment of the Central Plains Economic Zone and the Zhengzhou airport and comprehensive economic experimentation area, the rapid development of private small and medium-sized enterprises in Henan province has accumulated rich capital. But these small and medium-sized enterprises in the development process are easy to appear the phenomenon of capital gap, and financing is also relatively difficult. Then there is the emergence and development of local finance. The continuous development of local finance has greatly promoted the development of the whole economy in Henan province. But at the same time there are many unstable factors gradually appear. So, in this paper, on the basis of fully absorbing predecessors' research results and the actual situation of Henan province, makes every effort to innovate to build the perfect local financial regulatory system in Henan province.This paper first summarizes the related concepts of local financial supervision which contain the connotation, object, principle, etc. Secondly, it combs the related theory and necessity of local financial regulation: from the aspects of Internet financial innovation, ensuring local financial security, asymmetric information about financial regulation, solving the unequal of powers and duties, etc to analyze the necessity of the exercise of financial regulatory functions of local government. Then, this paper analyzes the present development situation of local financial supervision in Henan province: from the development of local financial supervision in Henan province, local financial supervision practice, effectiveness and efficiency of financial regulation, the problems and contradictions of financial regulation to evaluation and analysis. Moreover, this paper bases on the analysis of the current situation of the local financial supervision in Henan province to build perfect local financial regulatory system: from local financial regulation principle, the choice of subject, system composition,system guarantee mechanism and system of performance evaluation, etc to design. Finally, the paper puts forward to improve Henan local financial supervision countermeasures: Active promotion of the reform of the financial system, Improvement of the local financial supervision mechanism.