Research On Internet Financial Risk Prevention And Supervision

The Internet has fully and deeply penetrated into and deeply changed various fields of the economic and social development.The combination of the Internet and the finance has given birth to Internet finance,which offers consumers especially vulnerable groups a way to meet the needs of financing and wealth growing. In 2013, with Yu’ebao’s officially going online as a symbol, Internet finance began to grow explosively. Internet finance has improved the efficiency of financing, promoted the process of inclusive finance, and become a useful supplement to the existing financial system. However, because there are no sound laws and regulations about Internet finance, nor risk prevention and supervision system which adapts to the characteristics of Internet finance, the Internet financial industry grow in a savage state, all kinds of risk problems have arised. To strengthen risk prevention and supervision has become a practical demand of promoting the sustainable and healthy development of Internet finance and maintaining the security and stability of the existing financial system. With risk prevention and supervision of Internet finance as the main line of the study, the paper uses theories of economics and finance to analyze and solve problems,focusing on such problems as what is Internet finance and its industry, how is the condition of each industry of Internet finance, what risks is Internet finance faced with, what is a general framework for risk prevention and supervision of Internet finance, What are the problems of risk prevention and supervision, how to prevent and supervise the risks of Internet finance,ect. This paper includes seven chapters totally. The first chapter is the introduction, such as the research status, the research background and significance, the research ideas and frameworks, the research methods,the innovation points and deficiencies of the paper.The second chapter summarizes the relevant theories of risk prevention and supervision of Internet finance, such as financial innovation theory, financial fragility theory, information asymmetry theory, financial supervision theory, big data theory, long tail theory. The third chapter discusses and analyzes the definition, the main types, the formation mechanism and the transmission mechanism of Internet finance risk on the basis of expounding the relevant issues on the Internet Finance. The fourth chapter theoretically elaborates the general framework of risk prevention and supervision of Internet finance, including fundamental principles, main goals, suitable ways. The fifth chapter analyzes the current situation and the operation model of each industry of Internet finance, discusses the main risks of Internet finance, and dissects the present situation and problems of risk prevention and supervision in view of different industries of Internet finance. The sixth chapter discusses the current development and representative enterprises of Internet finance in Europe and America, and summarizes their experiences and practices in risk prevention and supervision of Internet finance from three different levels, i.e. risk internal control of enterprises, self-discipline management of the industry and risk supervision of the government, and on which basis obtains the enlightenment to our country. The seventh chapter puts forward the policy proposal on the risk prevention and supervision of Internet finance from such five aspects as the legal position, the credit system of Internet finance, the self-discipline management, the interests of financial consumers and industry regulatory focus.