Finance Innovation, Finance, Supervision & Administration, And System Analysis

Since the 1970s,the mest protruding characteristic in financial field in the rapid developent of financial innovation. On the one hand it has improved financial efficiency greatly, on the other hand , it lead directly the globie or regional financial crises.These financial crises exposed the contradictions between the finiancial innovation and supervision. Under such circumastance, how to give consideration to both financial safty and efficiency and handle the contradictions correctly has turn into a important problem for study in the world. Those I have referred are the very background under which I write this article.In this artisle I analyzed the game relationship between the financial supervision and innoration and approached how to promate the devlopment of our financial innovation.Tt is certain that there are sysem risk and marbet inefficiency in financial system so the government who acts the public interest should of wurse assume the cluty of financial supervision. Yet after the 1980s a unprecedented phenomenon which the financial innovation rolling on with full force unceasingly arised,It made the financial supervision and innovation connected closely and the contradictions more conspicuous.The initial motive of many financial innovations was escaping supervision. In the course of the perfecting the soucialist market ecoromic system a imyrortant link is reforming the old, unfit financial supervision system auording to the balkwordness of our financial innovation so as to promote the development of our financialindustry and increase the competitive ability.This article adopted the method game theory and analyzed the relationship between the financial innovation and supervision.based on the analysis I put forward the basic principles ,emphasis and developing orientation and proviede the policy suggestion according to promoting the development of the financial innovation.