Reformation Of China's Financial Supervisory System

One of reasons of the subprime mortgage crisis is that the financial supervisory system can not keep up with the pace of financial innovation,which leading the lack of supervision.The"capital controls"play an important role in China's financial market. China's financial supervision is useful,but the speed of the financial innovation is slow. China's financial market wills melt to the global market sooner or later.With the continuing development of financial globalization,there are more and more new financial products .New financial product rising rapidly,the chain of financial services becoming long and long and financial risk becoming unclear make it diffcult to prevent and supervise the financial crisis. The purposes of financial supervision are dcreasing financial risk happening,maintaining financial order, assuring the practice of currency policy,promoting economy's growth.So,economic globalization and financial liberalization need modern financial supervisory system,which is ensuring the purpose of financial supervisor. It is urgent for china to learn lessons from American subprime mortgage crisis and improve its financial supervisory system.This paper contains five parts.Part I ,the definition and types.This part discusses the specific meaning of financial supervisory system and its main types by comparing different types of financial supervisory system.It can be distinguished which one is better from that.Part II,the framework and faultiness of China's financial supervisory system.The terms and the present framewok of China's financial supervisory system is main infomations of this part.But there are also many problems in this system.Part III,new development of other nations' financial supervisory system.This part discusses present situation of United States' and Eu's financial supervisory system,and analyses faults in financial supervisory system after the subprime mortgage crisis, and points out the new development of these nations'financial supervisory system.Part IV,the reformation of China's financial supervisory system.Part V, conclusion.With the development of financial globalization,the traditional financial supervisory system in China isn't fit new circumtances yet. China's financial supervision achieves tangible results after improvement of financial organization,and China's financial law,supervision by financial organization and the basic work of financial supervision all achieve great advance .The financial order becoming better than before,and financial risks are controled in a degree.But,China's financial supervisory system is out of perfect for the historical reasons and the limitation of China finance. The subprime mortgage crisis affords us lessons that merit attention,and China must get this chance to reform its financial supervisory system for rising its financial supervisory lever.