Study On Allocation Of Local Financial Supervision Power Of China

Finance is the core of the modern economy,and hence financial regulation is essential to financial stability and the robust development of the financial industry.With the rapid development of Chinese local finance,the local government plays a more important role in handling regional financial risks.Financial development promotes further reform of financial regulation.At present,China has basically formed a two-tier regulatory system,with the central institutions(including the Financial Stability and Development Committee under the State Council,the People ’s Bank of China,China Banking Regulatory Commission,and China Securities Regulatory Commission)as the main body,and the local financial regulation bureau as a supplement.In the investigation and analysis of local financial regulation of China,the author finds problems in local financial regulation such as the lack of legalization of authorization,the lack of independence of power,and the incomplete supervision coordination mechanism.The basic laws of local financial supervision authorization are missing,and the legitimacy of the regulatory body of local financial supervision agencies is questionable;“decentralized” authorization has led to unclear borders and responsibilities for central financial supervision authority,which has led to regulatory Duplication and supervisory gaps;local financial supervisory agencies "emphasize development and neglect supervision","development function" squeezes "supervisory function";central supervisory agencies and local departments lack effective supervisory coordination mechanisms,etc.The core of the solutions lies in the scientific and rational allocation of local financial supervision power.It is necessary to clarify the difference between the central and local financial supervision regulatory objectives,balance the relationship between "financial security" focused by the central government and "financial efficiency" by the local one,and clarify the relationship between "financial development" and "financial supervision" of the local government.The power is legally and reasonably distributed in accordance with the basic principles of "definition of authority in accordance with law" and "the powers possessed by managers should be compatible with their responsibilities" Strengthen the independence of local financial supervision.Use the dual-peak supervision model as a reference to enhance the“behavioral supervision” capabilities of local financial supervision institutions.Specifically,the first is to accelerate the legislation of local financial supervision.From the perspective of laws and regulations,it is important to clarify such important issues as the subject of power,content,and the boundary of supervision power between the central and the local government,laying the foundation for the legalization of allocation of local financial supervision power.The second is to improve the structure of local financial supervision organizations.It is important to set up both local financial supervision bureaus and local financial work bureaus,realize the separation of local government financial supervision function from financial development function.At the same time,it is important to establish a sub-provincial-level vertical financial supervision system and ensure the independence and effectiveness of local financial supervision.The third is to improve the local financial supervision and coordination mechanism.It is important to optimize the duties and responsibilities of the local coordination mechanism,and give full play to the vertical role of the Committee for regulatory and coordination between the central and local government;set up a local financial stable development committee to coordinate financial development and financial supervision of the local government,to harmonize cross-sectoral financial supervision enforcement of local government and to establish risk disposal linkage mechanism.At the same time,it is important to accelerate the establishment of a national financial supervision data-sharing platform to optimize the data-sharing mechanism and to comprehensively enhance the supervision and coordination capabilities.