Theoretical Discussion On Adaptability Of China's Financial Supervision Under New Conditions

Owing to the complexity of economic transition and the changes of international and interior financial conditions, enhancing adaptability of financial supervision of China would be relative directly to prospects of financial and economic development and would be the requirement of Chinese financial system reform in light of its "Tenth 5-Year Plan(2001-2005) for National Economic and Social Development". So studying on enhancing adaptability of financial supervision is of important academic value and practical signification. The article is divided into four parts and discusses the problems about adaptability of financial supervision under new conditions from multiple angles. So far studying accomplishments on adaptability of financial supervision are rare and systemless, therefore firstly author interprets its concept and contents in part1. From fundamental sense, it can be defined as the adaptability and adjustability of financial supervision system of one country or area under some international and interior conditions, and from composing factors of financial supervision system, the comprehensive reflection of adaptability or harmony between supervisory objects, principles, models, measures, contents and financial surrounding. Meanwhile "adaptability of financial supervision" is distinguished and associated with "validity of financial supervision" we often meet at academe, which presents the former's special importance. Thus reform orientations including 5 kinds of transition and aim establishment embracing 6 sub-aims are put forward so as to cater for requirements of modern financial supervision.In part2 a series of phasic accomplishments of financial supervision adaptability have been made by Open-and-Reform, especially since 1994. In a whole China's financial supervision has adapted new conditions and been developing towards legislation, standardization and internationalization. This part's focus lies in analyzing materialy such bequeathal problems at present as obscurity of objects, singularity of supervisor, invalidation of operation, lag of measures, shortage of competence, differ of standard, flabbiness of restrictation,separation of system and stricture of visions, ect, and expounding the reasons of those problems based on the facts which have never been resolved. Then, it is obvious that disordering of adaptability of financial supervision brings serious harms and outcomes to China's financial and economic development, mostly displayed by of institutional construction and information transmission as well as risk defence and financial innovation., which has been proved easily by real cases. So we must pay great regard to adaptability of financial supervision.In addition to above survived problems related to system reform and transition, as the other emphases of this article, China's adaptability of financial supervision is still confronted with new challenges. Part3 discusses new problems and challenges to adaptability of financial supervision brought by financial and economic conditions. And these new conditions are mostly composed of the following four factors , firstly financial liberalization which often yields to fluctuation of capital prices and unlimited extension of capital market and speeding of financial integration and outbreak of financial crisis, ect, secondly mixed operations trend which is represented by adjusting of financial policies and occurrence of financial shares-controlled blocs, ect, thirdly impacts of net finance which manifested by implementing of electronic currency and international harmony of financial supervision and consummating of financial statutes and contradiction between assimilation of net techniques and diversification of supervisor, ect, fourthly financial innovations which lead to invalidation of currency policies and swelling of financial risks and worse frangibility of global financial market, ect.To enhance adaptability of financial supervision is China's long-time strategic task and management aim. Facing the survived problems and new challenges,...