The Construction Of China's Financial Safety Net

From China's full liberalization of the financial sector in 2006, a marked uncertainty of the financial markets increased. The country's financial security is facing serious challenges. The lessons of Thailand's financial crisis and U.S. subprime mortgage crisis show that market economies do not form a reasonable financial security barrier and safety nets, the hastily liberalized financial markets and exchange rate controls,financial supervision has not kept up financial innovation,all are affected to suffer financial market volatility and even impact of financial crisis and bring about catastrophic consequences.Moreover, there is moral hazard, adverse selection, the mismatch of resources, the cost burden of defects in the financial safty net. At present, China's financial safety net is still not complete. Whether in the prevention, early warning, or crisis management, there is a very serious deficiencies . It is difficult to adapt to effectively guard against financial crisis and safeguard the financial security requirements. Therefore, how to expand the opening up of financial market conditions to ensure the security and stability of the financial system has become China's economic and academic research on new topics.In this paper, drawing on foreign experience, in analyzing the status of China's financial safety net, based on China's financial safety net put forward a sound proposal.