Research On The Development And Supervision Of Internet Finance In China From A Functional Perspective

The rapid development of internet technology and its deep integration with finance give birth to the rapid development of global internet finance.There is a gap between the huge financial demand formed by China's sustained and rapid economic growth and the limited financial supply provided by the original financial system,which catalyzes the development and popularization of Internet Finance in China.The mismatch between the existing financial supervision system and the Internet financial business and the financial pattern brought about by it has been promoting the pace of China's financial regulatory reform.Financial function is the reason of the generation,existence and development of financial institutions,financial instruments and other financial elements.From the perspective of financial function,this thesis breaks through the phenomenon description and micro research,organically combines the mechanism research at the micro level with the policy suggestions at the macro level.From the perspective of promoting the functional improvement of China's financial system,the thesis puts forward the path of improving the Internet financial function and the principles of effective supervision,aiming at promoting the healthy development of Internet Finance and even the financial system,and making each other better Online financial supervision policy can better balance risk prevention and financial function.The main contents are as follows:First,starting from the financial function theory,the thesis systematically combs the financial development theory and financial function theory,and on the basis of absorbing the content of financial function concept,constructs the hierarchical structure and analysis framework of Internet financial function,and divides the Internet financial function into basic function,core function and expansion function.Among them,the basic function mainly refers to the clearing and payment function,the core function mainly refers to the resource allocation function,and the expansion function mainly refers to the risk management function.These functions are the fundamental reason why the economy needs finance,and it is also the direct manifestation of financial services to the real economy.The effective exertion of the three levels of financial functions needs to be based on sufficient and effective information,and effective incentive mechanism in the principal-agent relationship.Information supply and incentive mechanism is an important realization mechanism of financial function.Secondly,starting from the analysis framework of Internet financial function,the thesis analyzes the main Internet Financial formats in which the three pillar financial functions can be realized one by one,and analyzes the development process,functional mechanism and special risks of each of the main formats,and then summarizes the essence,connotation and logic of the improvement of Internet financial functions from the macro level,and puts forward the functions on this basis The concrete practice mode of improvement.Thirdly,in order to promote the function improvement of Internet Finance and the whole financial system,on the basis of the above research,the thesis systematically reviews the history and experience of foreign financial supervision,reviews the development process of China's Internet financial supervision and the supervision of various business types,and systematically puts forward the principles that should be adopted in China's Internet financial supervision,And further put forward the policy suggestions of scientific and effective supervision of Internet finance.The main points of the thesis are summarized as follows:Firstly,on the basis of financial function theory,through combing the business process,operation mode and risk characteristics of the main business forms of Internet finance,it is found that each form has better financial functions in some aspects,and has made good compensation for the blank areas or function short boards of the original financial system services,and effectively expanded the financial resources from the perspectives of time,space,people,etc The coverage of financial services not only improves the service efficiency of the whole financial system,but also greatly stimulates the innovation vitality of traditional financial institutions.Secondly,it promotes the financial system to be open and effective,and at the same time,it also enhances the financial system and information dissemination.On the one hand,the essence of Internet finance is finance,and the financial risks inherent in the financial system still exist in Internet finance;on the other hand,each Internet financial business form integrated with Internet technology and ideas will form unique financial risks different from the past in some aspects,and greatly increase the contagion and transmission speed of financial risks,which is the original financial supervision The regulatory system and the existing spot supervision and special supervision for Internet finance put forward new requirements for reform and innovation.Thirdly,starting from the essence of financial function theory,financial supervision needs to be designed from the macro level,and the overall design of Internet financial supervision should be based on the function of the whole financial system.In line with the characteristics of cross-border integration of Internet finance,the previous separate supervision ideas,special supervision practices,and short-term supervision model step by step are not conducive to the effective play of financial functions,and it is also likely to accumulate and trigger systemic financial risks.Fourthly,by using the endogenous economic growth model for reference,it is further proved that Internet finance greatly reduces the friction and adverse selection of financial transactions through the change of the nature of information provision mechanism,improves the efficiency of information transmission,expands the financial coverage,mobilizes more monetary capital,shortens the transaction radius of capital supply and demand,and gives better play to the financial service entity economy The function of economy.Internet finance is not only the most dynamic field of China's financial industry in the past decade,but also the most controversial field in China's financial industry in recent two years.On the one hand,represented by the third-party payment,Internet finance has shown continuous innovation ability,has a profound impact on traditional finance,and greatly improved the function of the financial system.On the other hand,represented by P2 P network lending,the risks of Internet Finance and its great harm to the economy and society have also been exposed.As a result,a series of provincial special supervision and rectification activities started at the end of 2018,and a series of retirement policies were issued and implemented efficiently.However,liquidation is not the purpose,and how to realize the healthy development of the industry under risk control is the fundamental.the thesis and many researchers hope to find the answer and provide suggestions for it.