On The Construction And Utilization Of The Finance Security Network Of Our Country

National economic secarity is a hot topic in vecent years, especcally in the time of economy globlization after cold war, the content and key of strategy changed conespondingly. It include finance security~ industry and market secarity . strategy material and energy security ~. economic informalion network security and so on, of the most important of wh ich is finance security.Finance secufity network is an undividable ingredient of a country's finance basic structure and is an indispensable condition for the credit of bank and for the safely managing of finance system. The collapse of finance system will bring uncountable loss for the society, so many countrys have built or are building all kinds of finance security network.The network is made up of the authority of supervisor, central bank and public bank system and the organization that do the same business as banks. It is a kind of mechanism against crisis built in the long experience of finance crisis and is an important part of the finance system of a country.The network includes the cautious superoisor from the authority the last admimister of loan of central bank and deposit security system.The network has the functions of being against risks risk compensation helping during crisis promoting macro development of economy, but it also have its problems. They are moral risk, adveise selection, resources wrongly organized, cost burden, etc.Not being involved in the Asian Finance Crisis that exploded in 1997 doesn't mean that we are safe enough and we have nothing to worry about. On the contrany, there is potential severe finance risk because of the low quality of capital of the banks in our country. Many middle or small scale finance cognization faced the hazard of disbursing, some's debt even exceed their capital. Some trust company and some city credit company have to quit the market by ways of closing or dessolving. This is a servious situation. China will be a member of WTO soon, and will face theHIcompetetion from abroad, so systematical finance criris is likely to break out and we should pay more attention on this situation.There are some defects in our finance security system. Although the system on cautious supervision is improved, the level of technology and methods of superivision are far away from developed countries. We are incapable of setting up a perfect system against risk, and from the history of our reloan and discount we can see that there is no the lender of last resort in our country. Moreover, there is no public automatic material compensation insurance system in our country but a reserved deposit insurance system,.The state offord the loss eventually. The system is not good for building a system against finance risk and aggravate the moral risk.This theme is baesd on the international experience and achievement of scholars in and out of our country and it provided frame and policly system of our finance security network.The keys of improving cautious supervision are the followings: First, the entrance qualifiation into market and the control of capital limit. We should build finance risk prior-warning system by ways of the popular methods of risk supervision -nonworkste surpervison. Second, set up and perfect the last loan system so that we can perfect capital market systems marketli ze the interest rate . enhance the supervision of central bank and announcement of public information. Finally, set up compulsory deposit securoty system that should be based on our actual situation and the goal of finance system reform. The system set up deposit insurance company based on state credit which collect, manage and utilize the deposit insurance and deal with the deposit with defects and be responsible for the compensation for the depositor if the finance orgnization who is insuranced is closed.