Research On The Local Government Financial Regulatory Power In The View Of Decentralization

The core issue of the financial regulatory system is how to allocate the power between the different regulatory authority.This allocation contains not only the sector distribution of the horizontal,but also the vertical distribution between the central and local government.With the rapid development of financial market,there are certain potential risks have brought to the healthy development of the financial system.The local government financial regulatory system is necessary to be established,and it is an important part of the national financial regulatory system.The subject of this paper is study the allocation and operation of local government financial regulatory power.This paper consists three parts—introduction,text and conclusion and the text is divided into five chapters.Chapter ? discusses the basic theory of local financial regulatory power.The central and local decentralization is the foundation of the theory of financial decentralization.In the context of decentralization,the local financial regulatory authority and the central financial authority make up the integrity of financial regulatory system.With the development of financial market and the precaution of financial risks,the local government regulatory power gets value rationality and legitimacy.Its theoretical basis lies in the market failure theory,public goods theory,incomplete law theory and local governance theory.In addition,this chapter analyzes the concept,nature and characteristics of the power.Chapter ? discusses the allocation of local government financial regulatory power.Financial regulatory power allocation is closely related to the reform of financial and the relationship between central and local government in China.There are some problems in the power source,power configuration and power execution.The allocation of local financial regulatory power is restricted by many factors,such as the political structure,financial system,government function.The power allocation shall abide by the principle of the limited decentralization,regulatory efficiency,legal rights and responsibilities balance.According to analyses these influences,the article makes a hierarchical structure of integrated regulation at the horizontal level and separate regulation in the vertical dimension.Chapter ? discusses the local financial regulatory agency.The establishment and operation of the local financial regulatory agency should follow the general principles of financial regulation,and should take the political system into consideration.In our country,there are many problems such as fragmentation,insufficient capacity,and operation conflict of the local financial regulatory agency.According to this view,a local government financial regulatory agency should set up independent.Chapter ? discusses the object and content of the local financial regulatory.Local financial regulation is a constantly adapt to the innovation of local financial market.The determination of the regulatory object should distinguish the boundaries of market discipline the central government regulation,with financial function view is based,to follow the principle of market,regional and risk.According to the regulatory capacity of the local government and financial market development,the object should be adjusted to set up an open and dynamic adjustment system.In terms of power content,the local financial regulatory agency have the power to make rule in a limited way,allow market access,supervise and inspect and take regulatory measures to the local financial institution.Chapter ? discusses the operation of the local financial regulatory power.The operation mechanism of the local financial regulatory power includes the procedure system,the coordination system,the accountability system and the supporting system.The local financial regulatory agency should comply with the public,fair,efficiency,participation procedure idea.In the coordination mechanism,cooperation,information communication,consultation and conflict resolution system should be established.At the same time,regulatory accountability should be strengthened.To ensure the effective operation of local financial regulation,it is necessary to improve a series of supporting system including the reform of the relationship between central and local governments,strengthen of the financial legal system,supervision system and market self-discipline system.