Research On Government Behaviors In Financial Regulation

Financial industry is the core of the modern economy, so a well-run financial system with functions of intermediating funds, saving distribution costs, accumulating capitals, allocating resources, dispersing risks and so on, has an important role in promoting social production. The level of financial sector development and its operational status are directly related to the health of a country's economic system, and both of these are important indicators of a country's economic development. At the same time, there are many significant risks in the financial industry, and the financial crisis often becomes a cause and a major manifestation of the economic crisis. Viewing from the phenomenon, the main objectives of the government regulation on the financial industry are preventing, eliminating financial risk, and maintaining the stability of the financial sector, and there is no denying that these are the most direct and general objectives of financial regulation, but just realizing this is not enough. Financial regulation is an important mean of the financial management and the economic regulation, and it has a role in maintenance of financial stability, as well as in the broader political and economic intents.With the samples of the United States, Germany and Japan, this paper studies the differences in financial regulation from the perspective of government behaviors, and reviews the formation and evolution of financial regulation of these three countries, and compares the details of three countries in the goals of monitoring, monitoring mode, the settings of the safety net, crisis assistance and other specific policy options, and sums up the characteristics of government financial regulation. Through the analysis we find that, although countries in the world are committed to improving the effectiveness of financial regulation, the behaviors of governments in the implementation of specific financial regulatory are significantly different. There are many reasons, such as the political system, the level of economic development and the cultural tradition. It is a combination of these factors contributed to the formation and the evolution of a country's financial regulatory system, so it is impossible to create a successful financial regulation without taking these factors into account fully.For our country, after three decades of development since the reform and opening up, the financial sector has great changes in the market size, industry structure, capital structure, business types and so on, and the financial regulation system has built and improved with this process. In the specific practice of financial regulation, we are very different with western countries in the control over the nationalization of financial institutions, the implicit deposit insurance, the crisis relief and other aspects. There are still controversies whether these regulatory approaches constrain the efficiency of the financial industry, improve the financial costs, and increase the moral hazard of financial sector, but in these three decades, China's financial industry hasn't a major risk, and the economy has maintained a sustained, rapid and stable growth, which shows that China's financial regulation is successful in general.However, these achievements can't cover up the shortcomings of China's financial regulation, such as imperfect legal system, backward regulatory tools and methods, artificial and arbitrary in monitoring, excessive government intervention in the operation of financial sector, the supervising officer lacked operational capacity, corruptions in monitoring and so on. Moreover, as the global economic and financial integration process, as well as China's market economy reform, the internal and external environment financial sector faced will undergo great changes, and financial risks will be very different in the way of formation, transmission channels and destructive aspects. These are major issues of China's financial regulation research to learn the advanced experience of foreign financial regulation, combine of the objective reality of our country effectively, improve the supervisory approach continuously, improve the efficiency of regulation, and then make the financial regulation become a powerful tool for promoting economic development in the base of maintaining financial stability.Finance arose from the process of serving for real economics, service function is the value of his existence. It is no significance that emphasizing on improving operating efficiency but overlooking the service function of finance. From the current development condition of finance, however, the pursuit for efficiency of own often weaken it's service function. Under the socialist system, financial regulation must restrain and guide the development direction of finance and correct the direction when it departure from the social efficiency, so that, making financial innovation to be an effective tool of improving resource allocation, not the object of speculation, making financial function of intermediation and allocation of funds truly serve the real economics construction and development.Market-oriented reforms that carried out in China aim at eliminating the disadvantages impeded the efficiency in old system, not the socialist system itself, so we have to prevent the tendency of over-correction. The reality in China has explained that socialist system is an important guarantee to protect the public's confidence in the financial industry and maintain financial stability, so uphold the socialist system is a basic principle of China's political system, and financial regulation in China must be adhered to the right direction that make the best use of the superiority of the socialist system. These are features and advantages in China's financial regulation, not the targets of reform. China's financial regulation must make the financial industry that constrained with institutions develop healthfully under the government guidance, and then serve the economic construction better.