Study Of Financial Regulation In The Market Constraints

Under the help of the theories and practices from Marxism Economics and Western Economics, the paper does a deep and systematic research on the market restriction in financial supervision and aims to propose some suggestions to improve the ability of financial supervision in Chinese market and enhance the financial competence.With the rapid development of economic financialization and financial globalization, how to make sure of the safe and efficient operation of finance has become an unavoidable question. The authority of financial supervision shapes the financial world to a large extent. What's more, the level of financial supervision exercises a great influence on the safety and efficiency of finance. The question of financial supervision has become one of the questions that have bothered the safety and steadiness of finance and economy of every country in the world since the 20th century. After the inflation and stagnation which indicates the failure of government interference in the 1970s, the financial supervision theory has been greatly influenced by neoliberalism and great importance has been attached to improve the supervision ability by the restriction of the market itself. Having suffered a great loss in a series of financial crisis globally in the late 1990s, the financial supervision has changed a lot from theory to practice: control is stressed in the macro level, while in the micro level efficiency is emphasized and careful financial supervision is advocated. Careful financial supervision does not deny the function of government but rather emphasizes that on the basis of available information, the supervision and restriction effects which manifested by the free selection behavior of most marketers. In fact, themarket and the government differ in the information channels, in the stimulation systems and in the supervision methods, and the combination of the two can improve the quality of financial supervision. Especially, with the development of the financial liberalization, the enhancement of self-control responsibility in financial organizations and the expansion of moral risk behaviors, it's even more important to restrict the moral risks for financial organizations using market rules; in this condition, market restriction has began to catch people's eyeballs. Therefore, The Basel New Capital Accord had lined out market supervision as one of the three important measurements, which gave a highly praise to the function of the market restriction in financial supervision.With dialectic the general methodology guideline, the paper attempts to follow out the scientific research methods of Marxism, confirming to the logic order which comes from the most abstract to the most concrete, beginning with the interrelation between the most basic elements, bringing in new elements gradually, and finally comes to the most concrete form of the subjects. The paper begins with a summary of the theory background for government control in controlled economics which serves as a theory stage for the following research. It goes on with the discussion of the general theory for market restriction, and applies it to the research of Chinese situation, then draws a conclusion of the basic judgment and solution for the status in quo in China. The paper has employed the methods of comparison, literature, case study, and qualitative analysis on the basis of fix qualification in the whole research work.According to the materials which the author has in hand, for the time being, the research on market restriction are mainly dealt with in financialsupervision works: the research abroad focuses on the advantage and disadvantage analysis of market restriction while in the home only limits to the introduction and evaluation of the related parts in The Basel New Capital Accord—the separate and systematic research is very rare. Here are some of the accomplishment and innovation of the paper:1.coming up with the suggestion of market supervision which employs market restriction as one of the most important methods for financial supervis...