The Theory On The Third Party's Supervision: The Theoretical Analysis Of The Role Positioning Of Financial Supervision Subject

The poor efficiency of financial supervision of our country is caused by the affiliated party's supervision. Every supervision behavior that the supervising party is affiliated to the supervised party is called the affiliated party's supervision. It is mainly shown as the government's supervision to state-owned finance (no matter organization or business) and financial behavior of state-owned economy (enterprise) in our country: Because there are countless connections between state-owned finance and state-owned economy and government, though the reform of stated-owned enterprises has lasted a lot of years, it has not still cut off their connection fundamentally so far. This causes unfair competition on financial market. The approval and implementing of a great deal of financial policies and measures which are obviously partial and tendentious make financial market problematic, and further lead to the lack of spark and vigor of state-owned economy including state-owned financial institutions, which rely on this kind of treatment and father love. On the contrary, the non-state-owned economy and non-state-owned finance show the vigorous vitality. The essence of the affiliated party's supervision is the game result among the supervising party, the supervised party and financial participants, and is the representation of indistinction between the functions of the government and those of enterprises on financial markets. The affiliated party supervision should change into the third party's supervision as soon as possible. "The third party's supervision"is that the supervising party works as the third party and does not have any related relation including the association and interests relation with both bargaining parties. This makes the third party totally with open, fair and just position and attitude guarantee that both bargaining parties compete fully and thus obtain one's own interests. Both bargaining parties have no right to intervene and infringe the third party. It defines the relation between the supervising subject and the supervised object clearly, and this basic relation does not change all the time no matter how the supervising subject and the supervised object change. This relation involves the trading and competing relation between financial institutions, fund raisers, and investors and may influence different interests subjects. On the financial market of China, " the third party's supervision " can be understood as follows: If the supervising party is the government department, then none of both bargaining parties should be state-owned financial institutions, and it is the best both parties are all non-state-owned financial institutions; if the supervising party is the non-government organization, both bargaining parties could be state-owned or non-state-owned financial institutions. The government attribute Of financial supervision organization of our country and the state-owned financial institutions'participation in financial transaction in a large amount have obviously violated the competition principle of market economy(Competition mechanism is one of three major mechanisms that the market economy can be operated), so we must correct it on the spot and quickly. The third party's supervision emphasizes the independence and authoritativeness of the supervising organization. If these basic institutions do not change and improve, the reform of other institutions has become water without a source and like a tree without roots. When the pick-up behavior caused by the publicity of financial products prevails day by day, investors' decision quality will be extremely easy to be influenced, and all sorts of potential risks will be fermented and gathered. In such an environment, financial institutions, especially state-owned financial institutions may have the minimum risk by violating the principle of scrupulous management and even taking risks excessively. Such behavior becomes the rational behavior of the individual financial institution, causes the final unrational consequence directly, and leads to the insufficientsupply of public products. This nature of financial system determine that its operation must be restrained and supervised by one unselfish subject in order to maintain the stability of this kind of product. The appearance of the third party's supervision not only can help to provide a good operation environment for fund raisers, but also can safeguard investors'fundamental interests, thus guarantee the whole financial system runs steadily and safely. According to the practices of developed countries, the construction of the supervising subject closely related with the third party's supervision has accorded with market economy from the beginning. Because they mostly regard non-state-owned finance as the major composition, the financial supervising subject works as the third party naturally, which guarantee the fair competition of financial markets and benign development of financial industries. It includes the establishment of the supervising subject, the arrangement of personnel and the request of holding a post. No matter how their financial regulatory systems changes, they improve gradually under the great environment and prerequisite that the third party supervise. Though financial problems brought by the lack of the third party's supervision in our country are seen everywhere, such as the problem of the non-performing loan of state-owned commercial banks, the division of stock rights of capital markets and the fund raising of private enterprises, But our reform in financial supervision in recent years is really coming near to the third party's supervision. The supervision subjects accorded with the request of the third party's supervision come into being, such as the separation of Central Bank, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission, which are becoming more and more independent. Each of them has their exclusive goal of supervision: China Banking Regulatory Commission by supervising the bank systems, China Securities Regulatory Commission by supervising the securities and futures systems, and China Insurance Regulatory Commission by supervising he insurance systems in order to guarantee the financial security, especially the separation of Central Bank, China BankingRegulatory Commission, the diminishing scale and proportion of state-owned finance, and the gradually flourishing folk finance. The route arrangement of the third party's supervision of our country discusses the comparative choice of financial supervision subjects of our country. The supervision subjects are the results of history and national conditions to, which has not already had a unified mode and is not unalterable. It may be government departments or private organizations, that is to say, the supervision subjects are plural and are composed by relevant government organizations and all sorts of non-government folk or private organizations。The power of the former is awarded by the government, which is responsible for establishing various kinds of rules about financial market supervision and the implementation of these rules. The power of the latter comes from the members' general approval to organization's decision, the appearance of violation of rules doesn't lead to the legal consequence, but might receive the discipline punishment of the organization. According to the realistic national conditions of financial industries of our country that state-owned finance occupy very great proportion, market-based degree is not high, competition is not fierce, and have high monopoly, low competitiveness, low opening, and unfairness, we draw the conclusion that if the supervision subjects are government departments, state-owned finance can't become the absolutely major composition of financial markets.So far, the concrete route arrangement of systematized reform of our financial supervision is that we should coordinate the relations of basic route, property rights route and technological route, regard fundamental construction as the ground, and carries on other reforms according to the principle of the minimum cost. Otherwise, our efforts in other respects must cause the increase of reform cost, the unsatisfactory reform result and even falling back.