The Research On The Improvement Of The Financial Supervision Efficiency Through CBA Method

Efficiency is the eternal pursuit of economy. Financial efficiency is one of the branches of economy efficiency, and financial supervision efficiency is an important component of the branch in the macro layer.After deep research in the situation of the financial supervision efficiency in China, and its causes and manners of improvement, we believe that how to improve the efficiency of the financial supervision, how to balance its strength and deal with those problems involved is the core problem of financial supervision. Cost-Benefit Analysis (CBA) give us a realistic way to determine whether the supervision polices are proper or not. And it is appropriate and at the same time relatively accurate to merge this method of analysis into financial supervision.The CBA itself does not set the policy goals, nor does it determine which case should be chosen. It acts as an useful tool to help the policy makers make their choices and adjustments efficiently.In this essay, based on the theory of Regulation Cost, based on the practical use of CBA by foreign financial supervision authority, we build up a operational CBA model. The core of this CBA method is SIX EFFECTS analysis, say direct cost, compliance cost, Quantity of the good sold, Quality of the good offered, Variety of products offered and Efficiency of competition. The above analysis provide references for the financial supervision authority to find which case can fulfill their policy goal fully with the lowest cost.Through using the model, we can assess the process of our determination of financial supervision policies and its following effect in a dynamic state, adjust it all the time and finally improve our financial supervision efficiency.