Research On The Allocation Of Financial Supervision Power Between Central And Local Government

The core issue of this research is the necessity and the way of allocating financial supervision power to local governments.With the development of China's financial industry,especially the financial mixed operation,financial innovation and the prosperity of the local financial industry,a huge challenge was posed to China's existing central centralized vertical regulatory power allocation model.The existing supervision mode can no longer adapt to the change of financial market.Now all countries are working hard to strengthen the prevention of financial integrity risks.How to effectively supervise new financial activities is an urgent issue that we need to solve.In the past,China's research and reform of the financial regulatory system were relatively concentrated on the allocation of financial regulatory power between the central government and government departments.There is a relative lack of research on whether local governments can enjoy and how to enjoy financial regulatory power.In the face of new changes in the market,local governments have actually participated extensively in the supervision of local finance.Local governments undertake primary territorial risk disposal responsibility and maintenance of stability responsibility,but the differences between the local governments have been large,and the mature and unified model has not yet been formed,and the important issues such as the positioning,legitimacy and content of local government financial supervision power both require further research and argumentation.To study whether local governments and their departments can enjoy and how to exercise financial regulatory power,we should first clarify the nature,status,and characteristics of financial regulatory power.The fundamental attribute of financial supervision power is public power,which is characterized by the pluralism and multiplicity of power,which determine that the exercise of supervision power must be rationally allocated.The justification of financial supervision to circumvent the dual risks of market and politics determines the ultimate goal of power allocation.In the process of power allocation,the power allocation between central government departments is based on the “functionality” theory of power,while the allocation of regulatory power between central and local governments is based on the theory of“structural” theory.Under the "structural" theory,China's financial market,power structure,government functions and other factors jointly determine and promote theurgent need for the central-local allocation of financial supervision power in China,in which the development of the local financial industry is the first major cause.The financial competition of local governments is the direct driving force.The maintenance of financial security is the fundamental purpose,and the reform of state power structure is the political background.To investigate the history of China's local financial regulatory powers.In the history of China,the allocation of local government financial supervision power and its gains and losses are of great significance to the construction and improvement of the existing configuration model.Its history can be summarized as: from financial centralization to limited local competition,to the central government gradually weakening the influence of local governments on the financial industry,and then returning to the central government in response to the global situation,to the current financial market The establishment of the road to reform is in urgent need of reform and adaptation of the financial regulatory power allocation model.China's current regulatory model is the central-level “One Bank and Two Committees” and the multi-head division of central-level financial supervision.The central supervisory authority performs its functions through local dispatched agencies.The power is mainly concentrated at the central level.There is coordination and supervision vacuum,limiting innovation,restricting development and other outstanding issues,it is imperative to allocate power to local governments.At present,local governments obtain certain financial supervision powers through the central government and its departmental policies and documents.This is a pragmatic approach.Although there are no clear and specific laws and regulations,there are factual supervision powers.The latest national policy clarifies financial regulatory territorial responsibilities and presents a possible trend of double-tier supervision.The development of the central regulation mode of financial supervision power has not been able to adapt to the needs of marketization,and there are many difficulties.In China's current central allocation system of financial regulatory power,financial supervision power is basically allocated to the central government,and local governments lack legal financial supervision power.The local government's participation in financial regulatory affairs is through the individual authorization of the central administrative department,or the initiative of the local government,which lacks institutionalized and systematic power allocation.Such a configuration model that regulatory power is concentrated at the central level is unable to deal with traditionaland new types of financial risks.The most critical flaw lies in the legality crisis of local financial regulatory power,resulting in insufficient coverage of regulatory objects,lack of institutional flexibility,lack of local legislative power,and unclear responsibilities.As far as the centralization of financial supervision is concerned,there are two modes of decentralized overlapping supervision and single-layer supervision.The former is typical of the United States and Canada,and the latter is the supervision mode adopted by most countries.There are federal and local government financial regulators in the United States and Canada,each of which plays a key role in financial regulatory affairs.United Kingdom,Germany,Japan and other countries are all atypical financial regulatory central decentralization models,but they are not without local supervision.The overall characteristics of the single-level financial supervision model in major countries and regions include the centralization and pluralism of the central-level supervisory bodies,including the “incompletely unified supervision system” between the two.Generally speaking,the enlightenment of the extra-territorial financial supervision of the central decentralization model in China lies in the legalization of its power allocation and its basis,whether it is the institutionalization of the United States from the beginning,or the development of the UK from industry self-discipline to legalization.As well as the institutional construction of financial supervision in Japan and the European Union,they all show obvious institutional characteristics.In comparison,local governments in China do not have legal financial supervision power at all.However,China's existing allocation model,except for the determination of individual regions through local regulations is mainly administrative and pragmatic allocation model.The characteristics of the rule of law.The revelation in foreign countries lies in its vertical allocation mode.The ultimate goal is to realize the effective exercise of financial supervision power.There are no advantages or disadvantages between the two modes,only whether it is appropriate or not.The centralized stratification regulatory system and the centralized regulatory system are greatly influenced by the federal or unitary state,but the two are not one-to-one correspondence.The final decisive factor of the model is the financial market and finance of a country and the the national conditions of a country's financial markets and financial systems.The reality of the pragmatic allocation of local government financial regulatory power has clearly indicated the necessity of allocating power to it.And institutionally allocate financial supervision power to local governments,we must first clarify the motivation,goals,values and principles of the central allocation of financial supervisionpower.The primary value of giving local government financial supervision power is to maintain the security and stability of local financial markets;The second is to improve the efficiency of financial supervision;Finally,it is also conducive to the realization of the value of local economic democracy.The allocation of local financial regulatory power should be aimed at realizing the structuralization of financial regulatory power,the legalization of the system,and the high efficiency in practice.With this value and principle as the guide,the allocation of local financial regulatory power should be based on the principle of rational decentralization,legal decentralization and equal rights and responsibilities.The fundamental path of the allocation of local financial power is the rule of law.The most fundamental crux of China's current situation is not the problem of whether the local government's financial regulatory power is available,but the lack of rule of law.According to the particularity of the local financial market and the relevant provisions of China's laws,the role of local authorities should be given full play,and the local financial supervision power should be allocated through local legislation.The subject,object and content allocation of financial supervision power should adhere to the independence,specialization and responsibility of local regulatory agencies,and establish the relationship between local supervision and centrally-directed central regulatory agencies.For content,it is necessary to clarify the two boundaries between local financial markets and government regulation,local supervision and central supervision.The effective operation of any norm is inseparable from the system in which it is located.The central top-level design should be improved,and strict and separate supervision should be implemented as a unified supervision;It is also necessary to improve the relationship between central and local economic power allocation,especially in coordination with fiscal decentralization and political decentralization;The bankruptcy system of financial institutions,the state aid system and the deposit insurance system are conducive to fostering strong and stable market mechanisms and fundamentally reducing market failures.