Defects Of China's Local Financial Supervision System And The Ways To Improve It

Local financial supervision,as a financial system arrangement provided by the government to correct market failure,ensures the steady operation of financial institutions and promotes the harmonious development of local economy and society through various supervision and management of market access,market operation and market withdrawal of financial institutions within a certain region.In recent years,Rapid Growth of Financing Guarantee Industy in Henan Province.On the one hand,it solves the financing problem of small and medium-sized enterprises,on the other hand,because of the lack of effective legal regulation,it breeds huge risks.Until then,this risk gradually developed into a systemic risk of local finance.Similar incidents occurred not only in Henan but also elsewhere.For example,Wenzhou in Zhejiang,Ordos in Inner Mongolia,Changshu in Jiangsu and other places have also experienced civil financial turmoil,which not only caused a lot of losses to customers' property,but also resulted in related operators being sentenced to prison.Through interviews with prisoners of these local financial crimes(for example,illegal absorption of public funds,fund-raising fraud,etc.),the author finds that the local financial supervision system exists in China.The problems of decentralized supervision functions,broad responsibility orientation,lack of coordination mechanism of local financial supervision,insufficient capacity of local financial supervision,conflict between local financial supervision and national financial supervision objectives are discussed.Put forward the vertical supervision mode of central supervision under provincial level.It is pointed out that the folk law is a supplement to the local financial supervision power.At the same time,the supporting system of improving the local financial supervision power is put forward.