The Research On The Government Coordination Organization And Mechanism In Finance Supervision

The extending of USA subprime mortgage crisis contributed to great loss of world finance organization, breakdown of stock market, depression of world economy and even financial storm in the world wide. People are urged to build a systematic and effective guarding system to supervise financial institutions. The coordination and cooperation between financial supervision institutions has become the common focus of countries over the world. The concept of corresponding supervision and management is shared among financial supervision and management institutions from both domestic and abroad. The research and establishing of corresponding mechanism of financial supervision and management is not only the hotspot in the world, but also significant to China in reality.In China, the financial supervision and management system was built at the principle that different industries responsible for themselves respectively. For a long time, the supervision of banking, securities and insurance have formed their own systems, and share responsibilities respectively. As the globalization of world economy, the development of finance freedom and innovation, the mixed operation has become the developing trend of modern finance. In the legislation frame of division industry operation the substantially mixed operation pattern of the business of banking, negotiable securities industries and insurance crossing and penetrating come into being. But due to the lacking of coordination system the financial supervision and management departments can't communicate and coordinate with finance institutions effectively or in time, thus the sharing of information can't be realized which directly affected the supervision and management efficiency of finance. With the enhancing of the mixing of different industries, and the innovation of finance, the establishing of coordination organization for fanatical supervision to consummate government's coordination mechanism is in great need.From the fundamental concept of financial supervision and management, this article will first introduce the coordination theory of finance supervision; and apply the analysis methodology of economics to demonstrate the necessity of the coordination among finance supervision and management institutions and their operation cost and income as well as their function benefit. And then it will look back on the development process of Chinese financial supervision institutions, and analyze its present situation of coordination between each other. After the comparing with the coordination systems in the developed countries as the U.S., Britain, Japan, working on the research achievements from both domestic and abroad, this article will explore in the following areas: firstly, referring the present finance practice in China, focus on the analyzing of the weak point of the finance supervision and management system, and government's coordination problem and its origin. It will also put forward a systematic concept about the coordination and organization of financial supervision departments especially the People's Bank of China, China banking regulatory commission, China insurance regulatory commission, and China securities regulatory commission. Secondly, on the end of theory, this article will analyze the new feature of finance supervision in and out of country; put forward the suggestions of new supervision concept of efficiency and also give attention to safety, to consummate the present finance supervise mechanism.