Network Finance, International Comparison And Reference,

The revolution of information technology, whose kernel is network technology, brings great opportunities and challenges to the whole society, so to finance. Being a financial innovation, network finance developed quickly in a few years, which cause a series of radical change in the following aspects: the management mode of financial institution, the structure of financial market, the performance of monetary policy of Central Bank and the operational mechanism of finance. Meanwhile, it challenges traditional economic theories, such as scale economy theory, marginal revenue theory, monetary policy theory, financial organization theory etc. In the face of the challenge of network economy, how to get hold of the opportunity and prompt the development of our country's network finance, become an important way to enhance the competitive capability of our country's finance. This paper intends to provide some constructive suggestion to the development of our country's network finance, by analyzing the network finance theoretically and learning from the experience and lesson of western countries.First, I discuss the connotation of network finance, defining the whole financial activities and related problems based on internet as network finance, which includes network financial institutions, network financial transaction, network financial market and network financial supervision etc. Then, I introduce the swift and violent development of network finance, pointing out that network finance is a major trend of financial development. Thereafter, I illustrate the structure and study method of this paper briefly.Network finance emerges in 1990's. At that period, with the development of information revolution, the electronic level of finance increase gradually, network economy being an major part of new economy makes first appearance, finance globalizes further. In other words, network finance is just formed under this background. Therefore,I analyze the inevitability of the formation of network finance from three aspects i.e. electronic finance,network economy and financial globalization .Firstly, by analyzing the developing process of electronic finance, Ipoint out that network finance is the certain outcome of further development of electronic finance. Secondly, by analyzing network economy, 1 point out that there is a well interdependent relationship between network economy and network finance, i.e. when network economy prompt the development of network finance, the latter becomes an important driving force to the lasting development of the former. At last, by analyzing the financial globalization, I point out that the intense competition caused by financial globalization is the internal force for the development of network finance, meanwhile the integration of financial supervision caused by financial globalization provides institutional assistance to the development of network finance.In the operating process of network finance exist compound economic effects, which make the network finance has Matthews Effects and cost advantage. I first analyze that network finance has compound economic effects i.e. the external economy, scale economy and scope economy effects. On the basis of the analysis, by using the laws of marginal cost decrease and marginal revenue increase, I point out that the externality of network finance being different from the traditional externality won't lead to unreasonable resources disposition. On the basis of abstract analysis of network finance scale economy, I analyze the cost advantage of network finance specifically, pointing out the cost superiority originating from: the substantial decrease of material investment of financial institution, the saving of operation and management cost, expenditure on interest decrease caused by the facility of circulating funds. The change of situation and technique condition of network financial market necessarily brings about the corresponding change of its competition mechanism. On the basis of the analysis that the competition of finance will be m...