Study On Financial Regulation Based On Consumer Protection

As the outbreak of the subprime crisis and the global financial crisis, more and more scholars and practitioners concerned with financial security issues. Security asks for corresponding financial system regulatory regime. The traditional theory of financial regulation is based on Basel II that is for micro-financial entities, this regulatory approach does not take into account the interaction between financial entities, which are not regulating for the financial system's overall risk. Thus, there is an urgent need to reestablish and improve the currented regulatory regime from macro-perspective. Because of financial consumers are the last holders as once as the financial crisis breaking out, consumer protection has become one of goals of the financial regulation.Consumer protection regulation as an important part of financial regulation, consumer protection refers to the goal of financial supervision and behavior, this paper based on the macro level, the theory of the use of macro-financial engineering and development, according to the nature of economic entities division, will have separate regulatory functions of the body constituted the regulatory authorities, so the macro financial engineering theory extended to the four departments of five departments, namely, regulatory authorities, public sector, financial sector, corporate sector and household sector. Second, the core issue of consumer protection regulation is the distribution of benefits, we will use the macro and micro economics, the financial market is incomplete, the consumer behavior of financial markets and financial markets consumer's optimal decision rules and macro-balance, etc. the theoretical analysis. Third, the consumer protection regulation based on quantitative analysis and qualitative analysis, based on the data in this paper, China's financial market supervision on empirical analysis of consumer protection, research indicates that China's banking market, securities market and insurance market in the interests of both consumers varying degrees of abuse, proceeds cannot guarantee that the average return on capital in the community level.In view of the international financial crisis caused in the world wide impact, before and after the crisis of consumer protection regulation of the development and reform, on the one hand to the international financial crisis before the world a more representative national consumer protection regulation situation analysis, including the adoption of a long regulatory Japan, two long focused on a single level of regulatory supervision of the Canadian English; the other hand, the western financial markets after the crisis the most developed countries in the summary of consumer protection regulatory reform, including U.S., UK, EU and Japan; Finally, the pre-crisis development of consumer protection regulation and supervision of post-crisis reform of consumer protection, put forward the current international regulatory reform on the overall trend is to improve the legal system for the main protect the financial interests of consumers, set up special institutions to implement the financial consumer protection measures, the establishment of self-regulatory mechanism to improve consumer protection efforts and strengthen the financial mechanism for handling consumer disputes, which improve the financial regulatory system in China in particular, to provide some consumer protection regulation foundation of practice.This paper uses the theory of financial markets, macro and micro economic theory and the theory of macro-financial engineering, consumer protection and supervision in a systematic theoretical and empirical analysis, based on the combined current consumption of the protection of domestic and international regulatory reform trends consumer protection regulation will be incorporated into the policy objective of financial supervision system, combined with micro-prudential supervision, macro-prudential regulation and supervision of financial efficiency in line with international trends in building the financial regulatory framework and financial supervision of the proposed ideas for further quantitative analysis. Based on this, build a system of consumer protection regulation: from the system in terms of the elements involved in the regulatory body (the regulator), the regulatory target, regulatory tools and regulatory objectives, as well as factors such as regulatory agencies set; from the system in terms of specific functions, which include the legal system, organizational system and implementation of the system; the scope of supervision from the system, it's the banking market, securities market and insurance market in such areas as consumer protection regulation.This paper is organized as follows: Chapter I is the introduction. Research background and significance from the start of the Institute related to consumer protection regulation to define the relevant concepts, including consumer finance, consumer protection, financial regulation and consumer protection regulation. Meanwhile, the combination of research studies targeting the use of this method and theory, and proposed the general idea, the content structure of the arrangement. Finally, according to innovations and shortcomings of this proposed consumer protection regulation Looking further research.Chapter II is literature review. First study the theory of the evolution of financial supervision process, from the stable, efficient type to the stability and efficiency of the three stages of monitoring both the theory of induction; followed by a basic research on the issue of financial regulation are reviewed, including the goal of financial regulation, financial regulation and the cost-benefit analysis of research; Third, the basic problem of consumer protection regulation to explore and to its macro-prudential regulation, micro-prudential regulation, financial supervision and the efficiency of the link between the other three goals were summarized.Chapter III is the overall research framework. Framework for the study design is usually from the ideas, frameworks, and content of three levels, this chapter first proposed the basic objectives of consumer protection regulation, the use of methods and theories and ways to achieve the basic concepts, namely the ideological level study; study is to establish the framework level the intrinsic link between the various parts of the preliminary arrangements for the chapter; content level and content of the basic research for the development of research ideas.Chapter IV is the theoretical basis of consumer protection regulation. This chapter is the use of financial market failure theory, macro and micro economic theory, macro-financial engineering theory of consumer protection regulation of the basic theoretical issues involved in the analysis, including the financial market failure and financial supervision, financial market imperfections, financial markets on consumer behavior, consumption of optimal decision theory and macroeconomic equilibrium, and the use of macro-financial engineering theory and development of content, build consumer protection as the theoretical basis for the regulatory system. Chapter V is empirical analysis of consumer protection regulation. Based on consumer protection regulation in this chapter the design of index system, with focus on China's financial market data analysis of the banking market, securities market and insurance market, the degree of consumer protection, namely, deposit rates and lending rates compared with the social return on capital, investors return and social return on capital, the insured yield and return on capital and other aspects of social difference. China's three major markets found that the actual rate of return and social return on capital difference between the larger interests of consumers are affected to different degrees of damage.Chapter VI is the development of consumer protection and regulatory reform. The global financial crisis on the one hand, the former world countries more representative analysis of the state consumer protection regulation, on the other hand, after the crisis the most developed countries of Western financial markets, consumer protection, regulatory reform carried out by induction, whereby proposed International Consumer Protection on the overall trend of regulatory reform for financial regulatory system, particularly in constructing enhance consumer protection and supervision to provide a foundation of practice.Chapter VII put forward the regulatory system is the design of consumer protection. This chapter on the basic framework of financial regulation, combined with the basic situation of China's financial markets, the regulatory body for consumer protection, regulatory object and scope of regulatory objectives, regulatory tools and regulatory principles and an overview of organizational settings, and from the legal system, the organization system and implementation of the system of three levels of building the basic system of consumer protection regulation. This chapter also contains the content of micro-prudential and macro-prudential. The goal of micro-prudential is consumer protection and the goal of macro-prudential is reducing the loss of country's GDP. But in some degree, the advantage of consumer protection relates a country's development. So the implement of macro-prudential although sometimes divert the goal of consumer protection. But in reality goal of macro-prudential is consumer protection. Finally, it focuses on banking, securities, insurance, consumer protection and market regulation. Chapter VIII is the conclusion and policy recommendations. Comprehensive full text of this chapter summarizes the various parts of the conclusion, combined with the reform of international financial regulatory system trends, regulatory status and consumer protection in China banking, securities and insurance on the three major markets such as consumer protection status of content, from system design and policy level arrangements for strengthening our financial regulatory system, especially the construction of consumer protection regulatory system targeted recommendations.