Research On Legal Issues Of Allocation Of Local Financial Supervision Power

The finance is at the heart of the modern economic system.With the deepening of the reform of China’s market economic system,the reform of the regulatory system for the local financial industry has also continued to advance in recent years.Among them,the vertical allocation of financial regulatory power affects the operation of local financial regulatory agencies,and is also inseparable from China’s systemic financial stability and the innovative development of financial formats.Reasonable allocation of local financial regulatory powers is conducive to alleviating the pressure of central unified supervision and promoting the improvement of regulatory efficiency.It is also conducive to more targeted supervision of local emerging business forms,reducing provincial financial risks and maintaing stability of the financial market.This article starts with the basic theory of local financial regulatory power,sorts out the history of the evolution of local financial regulatory power allocation since the founding of the People’s Republic of China,and combines representative cases with practical significance in local financial regulatory practice to conclude that the current local financial regulatory power allocation needs to be resolved urgently.Afterwards,it discusses the mature experience of vertical allocation of financial regulatory power abroad,and tries to make suggestions for further optimizing the allocation of local financial regulatory power based on China’s national conditions.The main part of this paper is divided into four parts.The first part begins with the definition and general theory of the concept related to the local financial supervision power,clarifies the specific meaning of the local financial supervision discussed in this paper,and analyzes the meaning of the local financial supervision power and its characteristics,including legitimacy and compulsion,relative independence and subordination,and then demonstrate the theoretical legitimacy of local financial supervision power allocation,which laid the theoretical foundation for the following.The second part mainly discusses the development and status quo of China’s local financial supervision power allocation.This part clarifies the five stages of the evolution of the allocation of local financial regulatory power after the founding of the People’s Republic of China: 1949-1978,the blank stage of local financial regulatory power under the "unified" regulatory model;1979-1992,the stage of local governments being granted financial supervision power under the vertical financial regulatory model;1992-2003,the stage when local financial supervision power was withdrawn under the centralized financial supervision model;2003-2012,the stage of financial supervision power games between central and local governments;2013-March 2023,the stage of local financial supervision power being gradually standardized under the two-tier financial supervision mode,and after the state council institutional reform,the pattern of “one bank,one commission and one bureau” begins to form.The factors that affect and restrict the allocation of financial supervision power are thus being summarized.This part also selects three typical cases of local financial risk events in practice,the Yunnan Pan Asia scam case,the "ezubao" case and the Shanlin financial case for discussion and thus point out the practical problems existing in the practice of local financial supervision in our country:the legitimacy of the source of local financial regulatory power allocation is doubtful;the boundaries of power and responsibility of financial supervision are unclear;the coordination mechanism among local financial regulatory agencies is not perfect and the level of local financial function supervision lags behind the development speed of financial technology.The third part explores outwards in order to find solutions to the dilemma faced by the allocation of local financial regulatory powers in China,and investigates and learns from the regulatory models outside the region.This part mainly focuses on the analysis of the "dual multi-head" regulatory model in the United States,the bimodal regulatory model in the United Kingdom,and the centralized and unified financial regulatory model in Japan,pointing out their respective operating mechanisms,advantages and disadvantages,and how they can contribute to our financial reform.The fourth part is trying to prescribing the right medicine,aiming at the shortcomings in the allocation of local financial supervision powers pointed out in the article.Based on the actual national conditions of our country,unifying our current situation of local financial supervision and drawing on the experience of foreign local financial supervision,it proposes suggestions to allocate the financial regulatory power to finally improve our local financial supervision,including improving the basis for the source of local financial supervision power;clarifying the standards for the delineation of central and local financial supervision powers,adjust objectives of local financial regulatory authorities to achieve sensible distribution of provincial financial regulatory powers;improving the horizontal and vertical coordination mechanisms of local financial supervision,and building corresponding supporting systems to promote their implementation;introducing regulatory technology to local financial supervision and innovating local financial supervision methods.