The Research On Effective Supervision Of Third-Party Payment In China

The payment system is the core infrastructure of a modern market economy and financial activities. Safe and efficient payment system is an important guarantee for the sustained and healthy development of economy and finance. In the past decade, China’s third-party payment, showing the trend of sustained and rapid development, has been expanding its business scale and involving fields; Also, third-party payment has been becoming increasingly close to the economic and financial activities, which reflects its growing importance in China’s payment system. In this context, this paper uses "market failure" theory to discuss the need for implementation of the supervision on third-party payment on the basis of systemic analysis of the development and current supervision on China’s third-party payment. To establish an effective supervisory mechanism, by drawing on advanced foreign supervisory experience, to proceed from the basic guidelines for effective supervision, supervisory framework and indicators, it analyzes in-depth and designs careful an effective supervision system of third-party payment according to China’s national conditions. It conducts a comprehensive and systematic study of the theoretical support and practical path about effective supervision on China’s third-party payment. The main conclusions include:(1) for different types of third-party payment institutions, the cognition lag and risk boundary judgment difficulty brought by innovative products, should apply differential supervision based on principle supervision, as a means of timely, dynamic adjustment in order to reach supervision objective of maintaining market stability and balancing interests of all relative bodies;(2) building effective supervisory framework for third-party payment in China requires a multidimensional, comprehensive consideration of the organizational structure and supervisory factors such as content, level, manner and measures;(3) the effective supervision of third-party payment at current stage requires to establish a measurement and early warning supervisory indicator system as soon as possible which covers third-party payment institutions’ liquidity, solvency, profitability, transaction security, recovery of losses and other aspects, centered on setting up customer’s provision. It designs more than20kinds of specific supervisory indicators. Compared with the previous findings of China’s third-party payment supervision, this paper uses a combination of abstract and concrete, qualitative analysis and quantitative analysis, specification analysis and model analysis, history and reality, and comparison of induction and deduction, on the basis of analysis of China’s third party payment development process, problems and supervisory necessity, to design to build a complete third-party payment market supervision system. The characteristics and innovation of this paper include the following:(1) Balancing both theory and practice, focusing on relevant institutional economics, Western economic theory, this paper analyzes and states comprehensively and systematically the suitable third-party payment supervision system for the first time from the basic criteria, the overall framework and supervisory indicators.(2) Basing on in-depth analysis of third-party payment development rules, combining the market failure theory, this paper analyzes the four major sources of market failure of third-party payment:public goods, externalities, monopoly and incomplete competition, and takes externalities as example.(3) Basing on detailed review of third-party payment emergence and development, comprehensive introduction of all kinds of business models and risks points, in-depth comparison of the basic models and useful experience of foreign third-party payment supervision, this paper states clearly the relevant supervision philosophy of effective supervision, and analyzes the supervisory strength, focus and objectives, and put forward viable conditions and feasibilities to achieve effective third-party payment supervision from the theoretical level.(4) This paper initially builds the basic principles, overall framework and basic mechanism of effective supervision on China’s third-party payment. This paper uses game theory to analyze the basic guidelines of a third-party payment supervision, which adapts to China’s national conditions, based on the actual supervision situation at the present stage, so as to have certain theoretical and practical significance to establish and optimize China’s third-party payment supervision system. This paper presents and analyzes a third-party payment supervision framework, which is based on the Central Bank statutory supervision, supplemented by collaborative supervision of commercial banks, embodied a combination of external oversight and internal self-regulation. According to the supervisory objective this paper depicts the supervisory approach, the models, the key areas, as well as supervisory means in-depth.(5) According to the reality and focus of the supervision on domestic third-party payment institutions, this paper designs a provision depository mode suited to China’s third-party payment institutions, focusing on the core issue of customer’s provision. And in accordance with the design of the supervisory mode, this paper constructs a more comprehensive and pragmatic indicator system on third-party payment supervision, which reflects the third-party payment institutions’ balance, asset quality, safety, liquidity and profitability. The indicator system is conducive to reflect the operational status of third-party payment institutions, to facilitate the daily monitoring of their operational risks, so as to achieve the quantitative supervision of third-party payment institutions.