China's Financial Regulatory Issues

The financial supervision, gradually formed and developed in the process of financial development accompanied by financial volatility and crisis, is set up by a government to maintain the stability of financial system, protect the public confidence in financial system, safeguard the interests of depositors and control the overall risk of the financial system through establishing supervision institutions to implement supervision and operational control.From the Asian Financial Crisis in 1997 to the subprime mortgage crisis April 2007 in the United States, the financial supervision system of all countries has been challenged conspicuously.Based on the theory of financial supervision and development, the author proposes suggestions of perfecting China's financial supervision system. First of all, the author analyzes the evolution of the financial system in the United States, Britain and Japan and concludes the advantages and disadvantages of the separate supervision system and the mixed supervision system and the enlightenment on us.Secondly, from the history to the analysis of current status of China's financial supervision system, the paper finds out the measures to deal with the challenge. The trend of Mixed Operation of the financial industry is unstoppable, China's financial supervision system is also faced with mixed industry regulatory trends. In addition, the subprime mortgage crisis has bought about warnings to the world, and also bring an important inspiration to China. The above analysis shows that a modern financial system should strengthen the functional supervision and supervision in advance and attach much importance on supervision coordination. To make up corresponding supervision regulations according to the basic functions realized by the financial products, but no the business of non-financial institutions is the prerequisite of reducing the conflict of supervision function, overlapping and blind spot and maintaining the strong stability, continuity and consistency of the supervision policies. Our current supervision institutions need to go beyond the department utilitarian sight and put the interests of the country, people and investor on the first primacy.