Power And Responsibility’s Allocation Of Local Financial Supervision And Regulation From The Perspective Of Financial Decentralization

The history of the development of China’s financial market is a history of the evolution of financial decentralization.Since the decentralization of finance,China’s financial market has gradually emerged with multi-level,multi-form and multispecies characteristics,and local finance has shown a vigorous development.The rapidly developing local financial markets have posed serious challenges to financial security while meeting the market demand for financing,and it is imperative to reform and improve the local financial regulatory system.In January 2022,the Central Bank issued the Regulations on Local Financial Supervision and Administration(Draft for Public Comments)(hereinafter referred to as "Draft"),and in March 2023,the Party and State Institutional Reform Program was released,and the reform of the local financial regulatory system entered a new era.Based on the theoretical basis of financial decentralization and the configuration of powers and responsibilities,this paper combs through the Draft and the text of the regulations issued by each province,and summarizes that the current reality of the configuration of local financial regulatory powers and responsibilities in China has the problems of "single-line connection",poor logic of object configuration,and competing function configuration.There is still room for improvement.In this regard,local financial supervision should adhere to the four optimization principles of rule of law,high efficiency,consistency of authority,responsibility and benefit,and unity of objectives with central financial supervision,and establish a harmonious,complete and unified dual leadership system of local financial supervision,while also improving the supporting legal system,coordination mechanism and information sharing mechanism to reduce the frictional costs of information exchange.